Milling WheatThe Black Market market is firmer due to slower farmer selling. Russian wheat is about $5 higher than the season's lows of two weeks ago. Market operators are not yet discounting the potential reduction in the export tax as there has been no official government announcement. The expected cut could lower it from the current $13 to almost zero. Consequently, exporters could pay higher prices to farmers, increasing the volume of farmer selling in the coming weeks.The EU allocated 502,000 MT of wheat export licenses last week, bringing the total to 4.7 MMT compared with 6.4 MMT at the same time last year. EU wheat remains noncompetitive against Russian and Ukrainian origins, while French wheat is offered at about a $15 premium vers...
What You Need to Know Today: Chinese purchases of U.S. soybeans continued to accelerate, with USDA reporting another 558 KMT sold to China and 236 KMT to unknown destinations. Combined with sales announced Wednesday and Thursday, the latest purchases bring the three-day total to approximately...
From WPI Consulting
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.