Food self-sufficiency is China’s policy goal but Anna Czenthe with the Leibniz Institute of Agricultural Development in Transition Economies points out why the facts on the ground make it an impossibility. China has built up large strategic reserves, including half the world’s wheat and two-thirds of the corn, for a reason. It is one of the most water scarce countries in the world and this year drought is shrinking the water supply even further. She notes that future food demand will require an additional 3-12 million hectares of farmland that China does not possess. Replacing imports would cause “resource depletion and massive losses in welfare and quality of life.” She correctly notes that China will remain highly...
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.
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
Key Market Insights Macro markets delivered a full whipsaw today. Early in the session, crude oil had rallied back above $100/barrel as traders priced renewed concern over the U.S.-Iran standoff and potential supply risk through the Strait of Hormuz. That strength helped pull grains off their o...