The lowest cost producer is generally thought to have the advantage on market share, assuming all other resources are available. Indeed, Russian farmers have the lowest reported producer price for wheat and have the largest global export share. However, that is where it ends. The EU reports a higher average producer price but commands a larger share of global wheat exports than some lower priced producers. However, this could relate to quality, the cost of shipping and other intermediaries, etc. There may also be flaws in the producer price data. India and Argentina are both major global suppliers of wheat but do not report a producer price to the FAO. There may also be government programs that distort the outcome. Most impressive in...
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...
On Friday, at 6:57 AM, President Donald Trump announced, via a social media post, a 90-day window during which up to 300,000 metric tons of product for ground beef could be imported outside of tariff-rate quotas—a move aimed at bringing down costs for American consumers. This is the secon...
From WPI Consulting
Illuminating the value of technical research
On behalf of a commodity producer organization, WPI evaluated the outputs from a project that featured a $5 million investment into technical research over multiple years. WPI’s team captured the results of this extensive effort and synthesized them for presentation to the organization’s governing board; among the findings uncovered and presented for the first time was the development of genomic traits proven, via rigorous testing, to provide crop yield advantages of 50 percent or more to U.S. farmers in times of drought. Capturing measurable results from long-term efforts can be challenging. Educating clients on the dynamics of success measurement when quantifiable results are not readily available requires deep client-consultant collaboration and an ability to consider both near- and long-term client aspirations with market/policy dynamics – attributes that WPI brings to every consulting engagement.