Russian Grain Markets: 4 – 8 November 2024We have heard the voices from various sources forecasting a new grain crop in Russia and most of them differ in numbers. We will have to deal with terminology like bunker weight (straight from the combine) and standard weight (cleaned and dried accepted by the storage facility,) and geopolitical terms like “new regions”, occupied territories, and Crimea. Some include both and some include only certain territories.Russian Grain Union (RGU) downgraded the grain crop in standard weight not bunker weight to 126 MMT, reporting that 98 percent of the crop has been harvested. RGU forecasts export potential of Russia at 56 MMT of which 45 MMT is wheat. As of 1 November, Russia already exported 25.1 MMT whic...
Given yesterday’s headlines, today’s market action may not be what many expected. The dollar is little changed, crude oil is pulling back and stocks are trading higher. Crude may be the biggest piece of today’s reversal. Saudi Arabia is offering additional crude to Asian buyer...
Key Takeaways: Managed money is holding more than one million net-long contracts across agricultural markets, with corn, soybeans, and soymeal all reaching record net-long positions in September. Fundamental concerns surrounding yields, supplies, and global availability have helped justify the...
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.