World Perspectives
softs

Perceived Rice Shortage

Rice prices have begun to normalize after spiking recently due to India fearing a shortage and imposing export restrictions. This sparked panic buying and resulted in higher prices. The price of rice early this year was around $602/MT, substantially higher than the historical average of $381/MT, though the latter is in nominal terms. New Delhi is now relaxing its export restrictions. Notably, the price of rice is more correlated to the degree that production matches consumption than it is to the ending stocks available. World rice carryover (blue line in chart below) has been increasing and has been above the historical average going back to 2013. But consumption exceeded production in 2021 and 2022, so price has been rising despite ending...

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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.

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