Russia’s war on Ukraine continues to impact agricultural commodity markets and especially vegetable oils. Sunoil hit a record price of $2,570/MT in Rotterdam and CBOT has suspended trading in Black Sea sunoil futures. Although sunoil comprises just under 10 percent of global vegetable oil production, over half the oil is exported and so it represents 12.5 percent of world vegetable oil trade. Moreover, sunoil production is concentrated in Russia and Ukraine, which together account for 80 percent of globally traded supply. The situation is such that Russia boosted its export tax on sunoil to $372.20/MT and there is a quota of 1.5 MMT. Higher Prices Ahead Indonesian President Joko Widodo announced a ban on exports of palm oil. Earlier...
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
Monday, 25 May is a U.S. holiday, and both the markets and our office will be closed. Please note that the next issue of Ag Perspectives will be published on Tuesday, 26 May. The WPI staff wishes everyone a safe and enjoyable holiday weekend...
USDA’s monthly cattle on feed report was released today. The total number of cattle on feed in feedlots with 1,000 head or more capacity amounted to 11.6 million head, 102 percent of last year. Source: USDA, WPI Placements were up, but part of that is attributable to persistent drought c...
From WPI Consulting
Forecasting developments in production agriculture
On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.