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Wheat
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Intelligence covers market and price outlook, SWOT analysis, demand & supply drivers, engagement models and Procurement best practices

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Intelligence on category covers the following aspects market outlook, supply market, SWOT analysis, Cost components & Price outlook, Demand and supply drivers, Engagement Models and Procurement Best Practices

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Abi will answer all Wheat related
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Get up-to-date market and supplier info on Wheat to help you build

Intelligence covers market and price outlook, SWOT analysis, demand & supply drivers, engagement models and Procurement best practices

1

Intelligence on category covers the following aspects market outlook, supply market, SWOT analysis, Cost components & Price outlook, Demand and supply drivers, Engagement Models and Procurement Best Practices

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Assess Supplier Risk based on key risk and compliance parameters

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Supplier assessment covers the following parameters Financial Risk, Ethical, Labor, Environmental Compliance, IT Security.

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Supplier assessment is powered by world’s leading data partners including D&B, CreditSafe, Dow Jones, Refinitiv, Orpheus

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Identify right fit suppliers based on your selection criteria including revenue, capabilities, certification, geography

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Select suppliers based on industry, country, classification from a database of 4.2 mn suppliers. Get detailed supplier profiles with supplier capabilities, revenue, certifications, risk ratings

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Benchmark your category performance against peers and the market

1

Measure category performance on 15 key parameters across cost, risk and strategy KPIs

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Get information on key factors affecting your supply

1

Source Macro Data and Market Indices information from leading data sources across these key areas - Labor Rates, Currency, Energy, Country Risk, Trade Flow/Transportation, Port Data, Tariff, Weather and Epidemics

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Report Coverage

  • Wheat Starch Industrial Process
  • Global Wheat Trade Dynamics
  • Cost Structure Analysis – Wheat
  • Regional Market Outlook- Russia,  US, China, India, EU

Production Size

Global Production Size

758.24 MMT

CAGR

2.58

Table of Contents

  1. Wheat Market Executive Summary
  2. Executive Summary
  3. Global Wheat Market Overview
  4. Contract Structures
  5. COVID-19 Impac
  6. Sourcing Location Watch
  7. Supplier Watch
  1. Wheat Market Analysis
  2. Value Chain Analysis
  3. Wheat Starch Industrial Process
  4. Global Market OutlookGlobal Supply - Demand Analysis
  5. Global Demand Analysis
  6. Global Wheat Trade Dynamics
  7. Global Wheat Starch Supply
  8. Demand Analysis
  9. Cost Structures
  1. Wheat Regional Market Analysis
  2. Regional Market Outlook (Russia, US, China, India, and EU)- Supply - Demand Analysis; Trade Dynamics; Pricing Analysis
  3. Industry Outlook (US, EU, and Asia)
  4. Porter's Five Forces Analysis
  5. Innovations

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Wheat Global Market Outlook

  • The global production has been rising at a CAGR of approx. 2.58% over the coming five years. Production in 2018-19 was estimated to be 758.24 MMT, a modest increase by 1%, due to high supply in the European Union (EU) and Russian offset by lower harvest in the US.

  • The key factors driving the growth include an emphasis on wheat production in Russia due to export potential and the end-use industries such as feed and food, especially in Southeast Asia, with consumption having risen by approx. 3% from last year.

  • With respect to the wheat starch industry, approx. 4.7-4.9 metric million tons (MMT) is produced annually. The major producing regions are France, the US, Germany, the Netherlands, Australia, the UK, Belgium, Canada, Japan, and China.

Global Wheat Market Trends

  • As per Beroe’s wheat market study, the overall production is likely to increase owing to favorable climatic conditions in the US, the EU, India, the UK, and China, among others. This record-high production will help market players keep the worldwide global grain stockpiles at peak levels. In Kazakhstan, Russia, Canada, and Australia, wheat production is expected to see a marginal decline due to decreasing acres dedicated for wheat farming and rather allocating the area for barley and canola.

  • The worldwide export prices for corn steeply surged in May 2021, and wheat followed the suit. This was majorly owing to concerns regarding poor climatic conditions in the Northern Hemisphere and the inflationary expectations that echo the anticipated demand curve.

  • In the next couple of years, the usage of wheat in animal feed will expand, particularly in the EU, where a significant yield will support this trend. The US and the UK are exhibiting a similar trend, fueled by increasing wheat production. On the flip side, the usage of wheat in animal feed in East Asia is projected to decline against the rising consumption of corn.

  • In addition, through the coming decade, bioethanol production is likely to contribute to the global wheat market. Furthermore, the rising demand for antiseptics amidst the COVID-19 crisis is projected to persist propelling bioethanol production for at least the next couple of years.

Global Wheat Market: Drivers and Constraints

Drivers

Increasing Consumption of Wheat Globally 

  • The market report opines that the worldwide wheat demand in 2021 is slated to reach a record high majorly owing to rising consumption in South Asia for food items consisting of wheat. Consumer food choices in China and India have moved towards wheat items thus driving the demand.
  • The demand for wheat will further be driven by the processing sectors for the production of products, such as pasta, flour, and noodles.

Rising Usage in Animal Feed

  • In the next couple of years, the usage of wheat in animal feed will expand, particularly in the EU, where a significant yield will support this trend. The US and the UK are exhibiting a similar trend, fueled by increasing wheat production. On the flip side, the usage of wheat in animal feed in East Asia is projected to decline against the rising consumption of corn.

Constraints

Increasing Health Concerns 

  • Rising awareness of gluten allergies and potential health risks associated with gluten food products are likely to hinder wheat consumption.

Volatile Weather Conditions

  • Furthermore, fluctuating weather conditions recorded in multiple parts of the globe are projected to hit the market revenue pool.

Contract Structure

  • Animal feed manufacturers generally procure moderate amount of wheat, which could be between 200 MT and 500 MT in six months
  • Beer, wine, and bakery manufacturers normally procure a small amount of wheat, such as 1,000–1,500 MT on a yearly basis
  • For both these industries, a short-term contract (3–6 months) can be negotiated with the suppliers

Price Benchmarking

  • The key regions for wheat supply are the EU and Russia
  • MATIF price is the global benchmark for the EU trade of wheat
  • The export price is the global benchmark for Russian trade of wheat

Prices are expected to witness fluctuations based on the export demand. Russian export prices are the benchmark, as it is the biggest exporter of wheat.

Large buyers, who choose fixed-price short-term contracts (3 months), should enter into the contract in January 2018.

Global Supply–Demand Analysis

  • The global production has remained nearly stable from the previous year, but has been growing at a CAGR of 2.37% over the past six years.

  • However, the global production was likely to decrease by 3.7% in 2018 – 2019 F, owing to abnormal weather conditions and likely reduction in yield in key producing regions, such as the EU, the US, and Russia.

Wheat Production by Country (2017– 2018 E)

  • Around 70% of the total wheat production is dominated by the top five wheat-producing nations.

  • In Asia, China and India are the world's second and third-largest wheat-producing countries owing to the large arable land and favorable climatic conditions.

  • Russia's wheat production is growing appreciably at a CAGR of 14.8% over the last six years. However, the US is cutting down on its wheat production, with more focus on corn and soybean.

Global Wheat Trade Dynamics

  • Exports of Egypt, the world's largest importer of wheat, experienced a shortfall to reach 11.3 MMT in 2016– 2017, but they were expected to revive in 2017 – 2018 to reach 12 MM.

  • Russia has increased its market share for exports by 10% over the last five years, growing at a CAGR of approx. 25% to displace the EU and US as the top exporter in the world.

  • The EU exports have risen at a CAGR of 15.7% over the last five years owing to rich harvests in regions, such as France. The EU displaced the US to become the largest exporter, after Russia, since 2014 – 2015.

  • Wheat exports from Russia have grown at a phenomenal CAGR of 17% between 2013 and 2016 and were expected to further increase in the future, making Russia the top exporter in 2016 – 2017, displacing the EU.

  • Egypt is the world's largest importer. Russia and the EU compete with China for exports to Egypt. The latter has a shortfall in domestic wheat supply by about 11 MMT, making it import-dependent.

  • Russia and the EU incur 0% export tariffs to Egypt as the latter requires imports to meet demand.

Why You Should Buy This Report

  • This market intelligence report on the wheat industry offers details about the best contract structures, pricing models, and KPIs.

  • The research study lists the wheat price trends, industry norms, and payment terms in countries such as the US, China, the UK, Egypt, and India.

  • It delivers an outline and SWOT analysis of major companies providing wheat.

  • It provides regional wheat market outlook, drivers and constraints, and Porter’s five force analysis across different regions and countries.

  • Furthermore, this wheat market analysis incorporates comprehensive insights into factors that will impact the growth of vendors across the globe.

 

Wheat Market Frequently Asked Questions

  1. What key factors are driving the growth of wheat production?
  2. The key factors that are driving the growth of the wheat market include – emphasis on wheat production in Russia due to export potential and the end-use industries such as feed and food especially in South East Asia with consumption having risen by approx. 3-percent from last year.
  1. Who are the top 5 key producing countries for wheat and what’s their market share?
  2. The key producing countries include: E.U. (32 percent) China (20 percent) India (17 percent) Russia (13 percent) The U.S. (11 percent)
  1. How much wheat do animal feed manufacturers produce in six months?
  2. According to Beroe’s report, animal feed manufacturers produce a moderate amount of wheat ranging between 200 MT and 500 MT within a six-month time frame.
  1. What’s the average amount of wheat procured by beer, wine, and bakery manufacturers in a year?
  2. On an average, beer, wine, and bakery manufacturers procure wheat ranging anywhere between 1,000 MT to 1,500 MT every year.
  1. Explain the wheat price forecast benchmarking process w.r.t the industry?
  2. The price benchmarking indices for the wheat market is categorized based on the key supply regions namely the E.U. and Russia: MATIF price is the global benchmark for E.U. trade of wheat Similarly, export price is the global benchmark for the Russian trade of wheat
  1. What’s the ideal contract length that can be negotiated with the suppliers in the wheat industry?
  2. As per Beroe’s analysis, for both the animal feed and beer, wine, and bakery industries, a short-term contract of 3- 6 months can surely be negotiated with the suppliers.
  1. What is the key supply constraint and drivers that influence the wheat market?
  2. Following the insights of Beroe’s report, there’s nearly a 1.8 percent rise in the global industrial (wheat processing) demand during the 2017 – 2018 period. On the contrary, the global feed demand has seen a drop of nearly 1.7 percent.
  1. What is the general wheat market price in key regions?
  2. The global wheat market price in key regions are: Russia ($194/MT) E.U. (173€/MT) U.S. (154$/MT)
  1. By what percentage has Russia increased its market share for exports and why?
  2. As per Beroe’s analysis, Russia increased its market share for exports by 10 percent over the last five years at a CAGR of approximately 25 percent to displace both the EU and the U.S. as the top exporter in the world.
  1. What will lead to a decrease in the global production of wheat over the years?
  2. According to the global wheat market data report shared by Beroe, global production is likely to decrease by 3.7 percent owing to abnormal weather conditions and likely reduction in key producing regions like the E.U., the U.S., and Russia.
  1. What are the two leading cost drivers of the wheat industry?
  2. The two primary cost drivers are: Increase in the cost of labor in the US.. by 3 – 4 percent compared to the previous year Decrease in the cost of fertilizers in the U.S. region by 7 – 8 percent compared to the previous year
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