World Perspectives
feed-grains wheat

Russia’s Grain Shortfall

Today’s USDA quarterly Grain Stocks report provided the market with a bullish input but there may be another shoe to drop. Russia’s stocks to use ratio for corn and wheat have been dropping for four straight years. Over that timeframe, it is down 64 percent for corn and 48 percent for wheat. Russia has continued to export wheat at low prices despite the tightening supply, but it has increased the export duty on corn by ten-fold, to 2,786.2 rubles ($30)/MT.  Russia has exported aggressively to both earn foreign exchange and build respect from food insecure nations. However, Moscow has concluded that at least when it comes to corn, it needs to cover its own food security needs and prevent domestic food inflation. But wheat a...

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feed-grains soy-oilseeds wheat

Summary of Futures

May 26 Corn closed at $4.54/bushel, down $0.1325 from yesterday's close.  May 26 Wheat closed at $5.9725/bushel, down $0.165 from yesterday's close.  May 26 Soybeans closed at $11.5525/bushel, down $0.7 from yesterday's close.  May 26 Soymeal closed at $312.2/short ton, down $10...

feed-grains soy-oilseeds wheat

Market Commentary: Ags Sink on Oil Optimism, China Trade Worries; Fund Length Now a Liability

As quickly as it began, the U.S.-Iran war-fueled rally in commodity markets looks to be ending. Over the weekend and through Monday, several reports came in that highlighted political efforts to resume vessel traffic through the Strait of Hormuz. Perhaps most important was news that President T...

feed-grains soy-oilseeds wheat

Mercosur Regional Analysis

Corn After a week-on-week advance of 3.6 percentage points, the corn harvest reached 7.2 percent of the national area, with fieldwork concentrated mainly in Núcleo Norte and the east-central area of Entre Ríos, where yields are averaging 9.57 MT/ha and 6.52 MT/ha, respectively. Ea...

feed-grains soy-oilseeds wheat

Summary of Futures

May 26 Corn closed at $4.54/bushel, down $0.1325 from yesterday's close.  May 26 Wheat closed at $5.9725/bushel, down $0.165 from yesterday's close.  May 26 Soybeans closed at $11.5525/bushel, down $0.7 from yesterday's close.  May 26 Soymeal closed at $312.2/short ton, down $10...

feed-grains soy-oilseeds wheat

Market Commentary: Ags Sink on Oil Optimism, China Trade Worries; Fund Length Now a Liability

As quickly as it began, the U.S.-Iran war-fueled rally in commodity markets looks to be ending. Over the weekend and through Monday, several reports came in that highlighted political efforts to resume vessel traffic through the Strait of Hormuz. Perhaps most important was news that President T...

feed-grains soy-oilseeds wheat

Mercosur Regional Analysis

Corn After a week-on-week advance of 3.6 percentage points, the corn harvest reached 7.2 percent of the national area, with fieldwork concentrated mainly in Núcleo Norte and the east-central area of Entre Ríos, where yields are averaging 9.57 MT/ha and 6.52 MT/ha, respectively. Ea...

feed-grains soy-oilseeds wheat

CFTC COT Report Analysis

Friday’s CFTC report showed funds further expanding long positions across the major ag futures contracts for the eighth straight week. Funds added 244,000 contracts (40 percent) to their all-ags net long position – a massive weekly increase - with buying in corn and the soy complex...

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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.

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