A common remark about the wheat market is that we are awash in the stuff. After all, global ending stocks have climbed 43 percent over the past ten years. That is why the price has been dropping. In fact, wheat costs 32 percent less today than it did ten years ago. But the paradox is that on current trend, the world is going to run out of wheat. If one looks at surplus stocks on a per capita basis, the global carry out has fallen by almost a quarter over the past decade, from 35 tons per person to less than 27 tons. The area planted to wheat has dropped by 3 million hectares, or -1.36 percent. While the area planted to wheat has been contracting by an average annual rate of -0.14 percent, the world’s population is expanding at 0.92 p...
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...
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...