Russia's wheat exports were slower than expected in July at only 1.3 MMT. There seems to be one main reason for this trend, which is forcing exporters to take excessive risks. Milling Wheat The Black Sea market remains under pressure as the harvest in Ukraine and Russia is progressing rapidly with yields reportedly exceeding expectations. Russia's crop is now estimated at approximately 59 MMT or about 4 MMT higher than a month ago. Its exports, however, are slower than expected at only 1.3 MMT in July. The main reason for this trend seems to be the lack of clarity regarding the new export tax regulation and its diverging interpretations by the different customs offices in Russian ports. This new tariff is equivalent to half of the differe...
What You Need to Know Today: After a period of limited activity, USDA reported a sizeable 613 KMT in soybean export sales, including 330 KMT to China and 283 KMT to unknown destinations, potentially also China. The purchases represent a meaningful pickup in demand and bring China closer to ful...
Key Takeaways: Dry bulk markets remain mixed with Capesize vessels seeing continued pressure from weaker demand while fixtures and rate strength gradually increases towards the smaller vessel classes. Tanker markets are pulling back from their recent highs as tonnage moves out of the Mid...
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.