Russia’s war on Ukraine continues to impact agricultural commodity markets and especially vegetable oils. Sunoil hit a record price of $2,570/MT in Rotterdam and CBOT has suspended trading in Black Sea sunoil futures. Although sunoil comprises just under 10 percent of global vegetable oil production, over half the oil is exported and so it represents 12.5 percent of world vegetable oil trade. Moreover, sunoil production is concentrated in Russia and Ukraine, which together account for 80 percent of globally traded supply. The situation is such that Russia boosted its export tax on sunoil to $372.20/MT and there is a quota of 1.5 MMT. Higher Prices Ahead Indonesian President Joko Widodo announced a ban on exports of palm oil. Earlier...
Key Market Insights The broad market is locked in on this week’s Trump-Xi meeting in Beijing, but this is no longer just a trade summit. Increasingly, the meeting is becoming tied directly to Iran, energy security, and the growing global economic fallout from disruptions through the Strai...
From WPI Consulting
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.