Phase One Breakdown Ukraine just sold 15 cargoes of soybeans to China and officials in Kiev say they do not expect the coronavirus to impact their grain exports to the Middle Kingdom. Yet, China has forewarned that the coronavirus may cause it to reduce ag purchases from the U.S. Further dampening prospects of U.S. sales is a Beijing announcement that it is increasing subsidies to become more self-sufficient in soybeans. China’s Phase One purchase agreement with the U.S. does not begin until 15 February and admittedly, American soybeans are priced higher than Brazil’s for delivery this spring. Still, White House economic advisor Larry Kudlow warns that failure to meet Phase One commitments could result in “proportionate a...
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.