Milling Wheat The Black Sea market remained under pressure last week in sympathy with the EU and U.S. markets. With its export surplus almost entirely gone, Russian wheat is not competing with French or U.S. origins to the major destinations. Weather conditions in southern Russia and Ukraine continue to be favorable for winter wheat development with frequent rains and normal seasonal temperatures. Tunisia bought 92,000 MT of optional origin wheat at an average $225/MT CNF for May/June positions and $211/MT CNF for the first-half July position. At today’s prices, the May/June positions could be executed from Romania, Ukraine or France. The first-half July position is clearly based on a Black Sea execution, and the seller is betting o...
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.