Milling Wheat Wheat prices are higher this week with declining Russian, Canadian, and U.S. spring wheat production prospects driving the rally. The plight of the U.S. and Canadian spring wheat crops has been known for months now but the situation is changing with stubbornly low Russian yields. The market had been looking to the Black Sea to offset the decrease in North American production, a hope that is diminishing quickly. Consultancy SovEcon pegged the Russian wheat crop at 76.4 MMT last week, down 5.9 MMT from its earlier estimates due to lower harvested area projections and declining yields. Russia’s ag ministry reported the average wheat yield was 5 percent lower at 3.48 MT/ha. USDA is expected to lower its estimat...
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.