GOOD MORNING, Bean prices are rising this morning after China announced that starting Feb. 14, they would lower import tariffs on some US goods by half, with the Finance Ministry stating it would take goods with a 5% tariff down to 2.5%, with other goods moving from 10% to 5%. According to a Reuters article, China would halve extra tariffs on 1,717 US products. In the meantime, China continues to buy Brazilian beans since they are less expensive as harvest rolls along. Beans are stabilizing at current lows but it will take more signs of solid export activity to help futures into a larger rally. The markets still continue to grapple with uncertainties over the Coronavirus, and ultimately if it gives China an out to w...
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.