The U.S. and Brazil are edging toward a trade war over ethanol. Brazil has imposed a tariff-rate quota (TRQ) on imported ethanol with the full backing of the domestic industry there, and the U.S. ethanol industry is pressuring the Trump administration to remove the preferential tariff treatment for a number of Brazilian goods (since there is no longer a tariff on imported ethanol). To put the matter into perspective, it is instructive to take a look at the history of the two key trade measures. In 2010, the Brazilian government moved to temporarily eliminate its 20 percent tariff on ethanol imports and to have the market open through 2011. The purpose was twofold: 1) help the country fulfill its biofuel use goals with imports since domesti...
What You Need to Know Today: After a period of limited activity, USDA reported a sizeable 613 KMT in soybean export sales, including 330 KMT to China and 283 KMT to unknown destinations, potentially also China. The purchases represent a meaningful pickup in demand and bring China closer to ful...
Key Takeaways: Consumer spending is a key driver of the U.S. economy, and the latest retail sales data indicate that spending remains robust despite inflation. In September, total retail and food service sales rose more than 6 percent year-over-year, with food service spending up 7 percent and...
The Trump import plan for 300,000 MT of beef supplies used for ground beef, i.e., lean trim, from September through November has, according to Secretary Brooke Rollins, brought some relief to beef prices. The Executive Order states that the Secretary of Agriculture will analyze and review the m...
Illuminating the value of technical research
On behalf of a commodity producer organization, WPI evaluated the outputs from a project that featured a $5 million investment into technical research over multiple years. WPI’s team captured the results of this extensive effort and synthesized them for presentation to the organization’s governing board; among the findings uncovered and presented for the first time was the development of genomic traits proven, via rigorous testing, to provide crop yield advantages of 50 percent or more to U.S. farmers in times of drought. Capturing measurable results from long-term efforts can be challenging. Educating clients on the dynamics of success measurement when quantifiable results are not readily available requires deep client-consultant collaboration and an ability to consider both near- and long-term client aspirations with market/policy dynamics – attributes that WPI brings to every consulting engagement.