Considering the Black Sea's high level of old crop stocks held by farmers and the arriving big crops, the total feed wheat supply at the start of the 2016/17 campaign is expected to be record high. Whether that situation will result in significant harvest pressure will depend on two factors. Milling Wheat The Black Sea market remained firm during the past two weeks with the new crop values staying about unchanged despite the favorable weather and better yield potential as farmers are still reluctant to start selling. The Ukrainian crop has been revised upward by most analysts with the average estimate now about 21-22 MMT versus 18 MMT approximately a month ago. In Russia, the crop is expected to be about 2-3 MMT higher than last year.The...
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...
Dry bulk markets were volatile but ultimately steady this week with notable differences in rate developments across vessel classes. The Capesize sector, which led the recent rally in freight rates with its dramatic surge, pulled back slightly amid more cautious chartering activity, partic...
Key Market Insights Macro markets delivered a full whipsaw today. Early in the session, crude oil had rallied back above $100/barrel as traders priced renewed concern over the U.S.-Iran standoff and potential supply risk through the Strait of Hormuz. That strength helped pull grains off their o...
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.