World barley carryover stocks are forecast at 16.2 MMT in 2022/23, which would be the lowest since 1983/84 when the global population was 40 percent smaller than it is today. This historic tightness in barley availability is pulling U.S. barley prices higher, but not as much as would ordinarily be expected. In fact, the correlation of U.S. barley prices to global supply and demand is quite low. This is because the U.S. is a very minor participant in the global barley market. Only about 7 percent of U.S. production is exported, and that contributes a tiny one-half percent to the globally traded supply. This is in part because U.S. farmers find other crops to be more valuable in terms of net returns. This despite the higher loan rate for bar...
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.