Milling Wheat The Black Sea market has been under pressure during the past three weeks as Russian producers and exporters are trying to ship as much as possible before export restrictions are introduced by the government. Russia has exported a record 9.5 MMT of wheat since the start of the new campaign (versus 5.9 MMT at the same time last year). Major local analysts estimate the exportable surplus at 26-32 MMT versus USDA’s forecast of 35 MMT. At the current pace of exports, the surplus will be gone by the end of the calendar year. The Russian government will certainly intervene if domestic prices rise too much. They are historically high in RUB expression for the time being but do not require immediate government action. However, i...
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.