U.S. corn continues to be priced above the market and even now appears to be oversupplied. Domestic surplus corn stocks are 46 percent above what would be considered a tight situation. Yet, from a historical standpoint, U.S. surplus corn stocks are 55 percent below their 1987 peak. Instead, what has happened is that China has quadrupled its surplus corn stocks in under a decade. Beijing says it is working down the surpluses but at the same time claims that its real numbers are a state secret. U.S. trade negotiators have counseled China against the folly of oversupply but have saved their direct demands for other topics. Word is that Beijing is backing away from the full 10 percent ethanol blending requirement that would have better ratione...
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.