Global wheat production is forecast to rise 6.7 percent in 2019/20, which is causing prices to fall 1.9 percent. Meanwhile, world corn production is predicted to go down 1.87 percent with prices increasing 5.5 percent. Hence, the percentage of growth in corn prices relative to the supply change is larger than that of the drop in wheat prices as related to the production decrease. This is in part because prices generally climb faster on shortfalls than they decline on surpluses. It also reflects the influence of loss aversion in human decision-making as well as the outsized influences of the U.S. and China in the grain marketplace. U.S. corn production is forecast to fall more than 5 percent this year, but more than 60 percent of this decli...
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.