Russia’s war on Ukraine continues to impact agricultural commodity markets and especially vegetable oils. Sunoil hit a record price of $2,570/MT in Rotterdam and CBOT has suspended trading in Black Sea sunoil futures. Although sunoil comprises just under 10 percent of global vegetable oil production, over half the oil is exported and so it represents 12.5 percent of world vegetable oil trade. Moreover, sunoil production is concentrated in Russia and Ukraine, which together account for 80 percent of globally traded supply. The situation is such that Russia boosted its export tax on sunoil to $372.20/MT and there is a quota of 1.5 MMT. Higher Prices Ahead Indonesian President Joko Widodo announced a ban on exports of palm oil. Earlier...
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.