As U.S. wheat has become less competitive in global markets, production has been declining. While wheat exports are down 8 percent from their peak, production is off 20 percent. Instead, farmers have begun diversifying the classes of wheat that are produced. Historically, Hard Red Winter wheat constituted about 40 percent of production. This year, production fell by 16 percent. Hard Red Spring wheat is the second largest class, comprising 20 percent of output and this year it is up just 1.5 percent in total output. Soft Red Winter wheat is typically 15-20 percent of all wheat and production is up 15 percent this year. White Wheat is typically 10-15 percent of U.S. total production and it is up slightly this year. Durum is relatively...
What You Need to Know Today: President Trump claimed the ceasefire between the U.S. and Iran was over, as both sides accused one another of violating the terms of the agreement. Commercial vessels are increasingly steering clear of the Strait of Hormuz as security risks escalate following Iran...
Key Takeaways: The CME Group is launching new 90 percent Lean Beef and 50 percent Lean Beef futures and options contracts in July. There are five key factors that must be present in physical markets and futures contract specifications for futures contracts to become successful. The two l...
Russian Grain Markets: 29 June-3 July 2026 The new marketing season has officially begun in Russia, although bearish sentiment has been concentrated in the southern regions closest to the Black Sea ports, where export demand has been weakest. Delays in grain deliveries to inland elevators have...
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.