Russian Grain Markets: 20 – 24 March 2023 Many grain prices plummeted, which is no big surprise considering the massive carryover stocks. The reasons are the same: high export duties (wheat export duty is already $71.18/MT), spring campaign planting, farmers’ desperate need for cash, and global bearish trends. Domestic currency is also a factor but to a lesser degree. If RUB appreciates this will make things even worse. Everybody on the market now realizes how huge the previous crop was. Russian Statistics Agency reported that wheat stocks in February were 17.3 MMT. Overall stocks of all grains and pulses are estimated at 28.8 MMT which is up 1.5 times from last year. One of the main reasons for the bearish mood on the g...
What You Need to Know Today: There has already been a strong run of flash soybean sales announcements in recent weeks, but more than 1.4 MMT reported this morning is an exceptionally large single-day total with major implications for the market. If the sales to China and unknown destinations w...
In agriculture and food processing, we think a lot about infrastructure: transportation and storage, processing and packaging, distribution and delivery. It is a physical system of roads, railroads, and rivers; concrete and steel storage; processing plants, warehouses, and machinery; and, event...
Key Takeaways: The Panama Canal’s draft restrictions and decreasing rainfall outlook are driving big moves in dry bulk markets this week. Panamax markets are sharply lower as the economics of moving freight across the Canal are deteriorating rapidly, leading to support in Supramax vessels...
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.