With harvest only months away, Australian wheat production remains on a familiar knife-edge -- the scope for wheat production remains as wide as ever (20-27 MMT). At this point, anything is possible. So what should we expect?The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) recently made the news when it slashed the expected size of the upcoming wheat harvest (2012/13) by about 2 MMT to 22.54 MMT. This would be the smallest crop since 2009/10 and represents a sharp fall from the record 29.5 MMT produced in the previous year (2011/12). Australia exports most of its wheat production, so the expected fall in production has the potential to reduce wheat supply at a time when drought and lower forecasts are a hot...
What You Need to Know Today: Commodities were mostly lower across the board today after yesterday’s Federal Reserve meeting hinted at a potential interest rate hike later in 2026. The dollar index reached its highest level in over a year, and a strong dollar makes U.S. agricultural expor...
Key Market Insights Geopolitical Limbo: Geopolitical risk remained a key driver across global commodity markets today. President Trump stated that the Iran memorandum of understanding is not yet final and warned that military action could resume if negotiations fail. Both sides continue w...
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.