China has been purchasing significant volumes of corn at the same time it sits on the majority of the world’s surplus carryover of the grain. Its policy adjustment in recent years has brought its share of the global carryover down slightly but it still measures 61 percent. By contrast, the U.S. share of the surplus has risen from 16.5 percent to 22 percent of global corn stocks. China could be buying to fulfill its Phase One trade agreement commitments, or it could have smaller or more damaged corn stocks than publicly advertised. U.S. policy officials have told China that U.S. surplus stock building was a mistake in the 1980’s and they should learn from America’s painful experience. Yet, Washington looks to be repe...
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.