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: 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.