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
Illuminating the value of technical research
On behalf of a commodity producer organization, WPI evaluated the outputs from a project that featured a $5 million investment into technical research over multiple years. WPI’s team captured the results of this extensive effort and synthesized them for presentation to the organization’s governing board; among the findings uncovered and presented for the first time was the development of genomic traits proven, via rigorous testing, to provide crop yield advantages of 50 percent or more to U.S. farmers in times of drought. Capturing measurable results from long-term efforts can be challenging. Educating clients on the dynamics of success measurement when quantifiable results are not readily available requires deep client-consultant collaboration and an ability to consider both near- and long-term client aspirations with market/policy dynamics – attributes that WPI brings to every consulting engagement.