The use of wheat as animal feed is expected to hit a 25-year high in 2021. As noted by Carl Zulauf of Ohio State University, it is the ratio of the price of wheat to corn that determines the amount of wheat that goes to the feed and residual category. Zulauf ran the numbers for the U.S. from 1974 to 2017 and the graph below extends it to the present. The key is the price of the two commodities during June – August when wheat is generally priced lowest at the start of its marketing year. This generally skews feeding in favor of HRW, though SRW was the feed of choice in 2017/18. The correlation of this price ratio and wheat used as feed has been -0.69 percent in recent years. With HRW currently at a 6.8 percent price discount to...
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.