POTUS State Owned Enterprises A key complaint by the U.S. is that China competes unfairly as a non-market economy, the latest being an order from Beijing to domestic air carriers that they need to buy aircraft manufactured by local companies. However, things aren’t much better when the President of the U.S. (POTUS) coerces Japan into buying 2.75 MMT of corn it may or may not need in exchange for holding off on tariffs on Japanese automobiles. The trade negotiations between Washington and Beijing may include some structural reforms but transactional components such as Chinese commitments to purchase American agricultural products have been the undercurrent for over a year and are a likely key outcome. U.S.-Brazil Lite Brazilia...
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.
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...