The current tight global wheat market is a dynamic that is here to stay. For the most recent five years, global wheat consumption has increased by 7 percent and world trade in wheat has grown by 18.4 percent to keep up with it. Meanwhile, the global area harvested for wheat has only increased by 2.9 percent and average global yield by just 4.4 percent. There is not a lot of area suitable for expanding wheat production. Of the big producing countries, only Australia has added any meaningful area, up 27 percent from 10.4 to 13.2 million hectares. And Brazil, one of the smaller producers, has increased area by 60 percent to 3.20 Mha. However, most producing countries are basically flat for these important metrics. A boost in yield will requir...
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...
Monday, 25 May is a U.S. holiday, and both the markets and our office will be closed. Please note that the next issue of Ag Perspectives will be published on Tuesday, 26 May. The WPI staff wishes everyone a safe and enjoyable holiday weekend...
USDA’s monthly cattle on feed report was released today. The total number of cattle on feed in feedlots with 1,000 head or more capacity amounted to 11.6 million head, 102 percent of last year. Source: USDA, WPI Placements were up, but part of that is attributable to persistent drought c...
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.