One of the important misconceptions regarding the wheat market today is that prices are low because world demand has slowed. This is simply not true by any measurement.There has been no letup in the beating down of the wheat market. The super strong U.S. dollar and adequate supplies among the world’s major wheat-exporting countries have pushed U.S. wheat export sales to their lowest level since the early 1970s, just before the notable Russian grain purchases that surprised world markets. One of the important misconceptions regarding the market today is that prices are low because world demand has slowed. This is simply not true by any measurement. The three charts below show the ongoing growth in world demand for wheat, corn and soybeans ov...
From WPI Consulting
Communicating importance of value-added products
Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.