lt seemed good as inflation dropped from 9.1 percent in June 2022 to 3 percent in July 2023. Some politicians credited the Inflation Reduction Act, at least in name. Those that had earlier said a recession was inevitable if inflation is to be tamed were eating crow. Last week, Federal Reserve Chairman Jerome Powell emphasized a continued hawkish position on inflation even as some were suggesting the 2 percent target rate should be ignored. This week, recession is back in the lexicon. While monetary policy is under control, some are citing the continued decline in fiscal discipline. This decline continues despite the warning sign of Fitch Ratings lowering the U.S. credit rating from AAA to AA+ at the start of this month. The U.S. Congress w...
The U.S.-Mexico-Canada Agreement (USMCA) enters its mandated six-year review on 1 July. The original intent of the review is outlined in Article 34.7, which obligates members to: Provide recommendations and decide on appropriate actions. Extend the USMCA for another 16 years and meet aga...
Key Market Insights Geopolitical Limbo: Geopolitical risk remained a key driver across global commodity markets today. President Trump stated that the Iran memorandum of understanding is not yet final and warned that military action could resume if negotiations fail. Both sides continue w...
Key Takeaways: Drought remains a major threat to global agricultural production, particularly in regions with limited rainfall and growing water scarcity. Commercially available drought-tolerant traits in corn, soybeans, and wheat have generally delivered modest yield improvements, limiting th...
From WPI Consulting
Communicating importance of value-added products
Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.