Since the Russian government lifted the export tax on wheat approximately one month ago, there has been no real pressure on old crop prices. Instead, old crop Russian wheat continued to be offered at an inverse to the new crop during the past month. Milling Wheat Milling wheat prices in the Black Sea region have remained largely unchanged despite recent pressure on CBOT wheat futures following the release of somewhat bearish data from MATIF and USDA in the June WASDE report. It is interesting to note that Russia has exported 20.5 MMT so far this season, which is below the prior estimate of 25 MMT that was common before the Russian government decided to stop exports in February. Certain individuals are now wondering what happened to the 4...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
We have described the long-term investment climate in crop and livestock production, using data primarily from the Bureau of Economic Analysis (BEA). The data provided background on the current investment climate and outlook for agricultural capital formation. Our conclusion was that investment...
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.