EXPORT TAXES The government announced last week a permanent reduction in export taxes on major agricultural products. The revised rates are as follows: Soybeans: 26 percent to 24 percent Byproducts: 24.5 percent to 22.5 percent Wheat and barley: 9.5 percent to 7.5 percent Corn and sorghum: 9.5 percent to 8.5 percent Sunflower: 5.5 percent to 4.5 percent While the reductions amount to only a few percentage points and are unlikely to trigger a material increase in prices, they represent an important policy signal. The move suggests a more supportive stance toward agricultural exports and is viewed by the market as a step in the right direction. WHEAT Argentina’s wheat harvest advanced 15 percentage points over the past week, reaching 60...
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.