Historically, China has established a minimum purchase price only for buying directly from farmers and replenishing provincial reserves. Now the central government intends to shift to using it as a reference price and pay farmers when their sale price falls below this target in an attempt to move the industry to a more market-oriented framework. Oilseeds SOYBEAN STOCKS AT MAJOR PORTS As of 30 May 2014, soybean stocks at the major Chinese seaports reached over 6.85 MMT, an increase of slightly less than 50,000 MT from the previous week and 330,000 MT from the beginning of May. The volume was only 3.79 MMT during the same period in 2013, approximately 55 percent of current stocks. The 20 major seaports include Dalian, Qinhuangdao, Tianjin,...
Key Takeaways: Milk alone has not covered the full economic cost in any year since 2021: milk revenue fell short by $4.50, $2.15, $6.50, $1.27 and $2.34 per hundredweight in 2021 through 2025. Calf and cattle prices decided whether dairies cleared cost: cattle and other income lifted total rev...
What You Need to Know Today: The Federal Reserve held interest rates steady at 3.75 to 4.0 percent Wednesday, with two officials dissenting in favor of a 25-basis-point increase. The Fed upgraded its assessment of economic growth from "solid" to "strong" but adopted a more patient approa...
Key Takeaways: Expected growth in U.S. soybean crushing capacity and output, driven by biofuel demand, will increase domestic soymeal supplies, with production growth significantly outpacing demand. WPI forecasts soymeal production increasing from 65.8 million short tons in 2026/27 to 70.5 mil...
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.