General Comments There were two signs of official concern over slowing economies from different parts of the globe today. First, China's Central Bank dropped the key interest rate on one-year loans by 0.31 percent to 6.0 percent. This is the second Chinese interest rate cut in a month. Later the EU's ECB cut its interest rate 0.25 percent to 0.75 percent, the lowest level ever. Both cuts were widely expected as part of efforts to counter the respective slowing economic growth. In that sense, both interest rate cuts are acknowledgement by the respective central banking authorities that there are problems and underlying economic pessimism. The Chairman of the ECB said that Europe's economic recovery would be a slow process. Nearly half of...
What You Need to Know Today: Cattle futures extended their sharp selloff Friday as weakening cash cattle prices, deteriorating feedlot profitability, and reduced packer demand continued to weigh on the market. The inability of futures to sustain a rally following last week's bullish Cattle on...
As predicted, the Federal Reserve held rates steady at the last meeting before the midterm elections, likely in part because of the election (see WPI 19 October and 22 September). The decision comes at the tail end of a midterm election cycle that has been marked by the two parties campaigning...
Key Takeaways: WPI’s new EU rapeseed crushing margin models point to weaker processing returns over the next four months due to higher rapeseed procurement costs and weaker product values. Statistical forecasts call for German crushing margins to decline from €181/MT to €...
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.