The November edition of the Purdue University/CME Ag Economy Barometer shows that November was the lowest index of the year to date at 116 – down 51 points from November 2020. The only sub-index to increase was the Farm Financial Performance Index; it was up 2 points to 106 in November, that’s 10 percent above its low reading of 2021 in June, and 22 percent below its high in April. Crop prices are strong but worries about input costs are a drag on the outlook. According to the report, In June, 44 percent of respondents said they expected input prices to rise from 0 to 4 percent, a rate of increase consistent with the last decade’s history. Inflation expectations started to shift in September with one-th...
Key Market Insights The broad market is locked in on this week’s Trump-Xi meeting in Beijing, but this is no longer just a trade summit. Increasingly, the meeting is becoming tied directly to Iran, energy security, and the growing global economic fallout from disruptions through the Strai...
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.