• Wheat Market Intelligence | Price, Forecast, Cost Models, Market Analysis

Wheat Market Description

The global wheat production has been rising at a constant CAGR of 2.58 percent over the last five years. The key factors driving this growth include the emphasis of wheat production in Russia due to export potential and end-user industries such as feed and food in South East Asia. Approximately 4.7 to 4.9 MMT of wheat is produced annually in the wheat starch industry in major producing regions such as France, the U.S., Germany, the Netherlands, Australia, the UK, Belgium, Canada, Japan, and China.

The demand for wheat is high in the processed flour sector, particularly for bakery products in South Asia, which exhibits an annual growth rate of 2.6 percent. The suppliers are grouped into three tiers - tier 1 has global companies with 20 to 30 percent of market share, tier 2 has mostly global companies with 15 to 20 percent market share, and tier 3 has regional companies that make up 45 to 55 percent of market share. The report also provides a comprehensive market analysis in regions such as Russia, the U.S., China, India, and the EU. These include market information, supply-demand analysis, trade dynamics, and pricing analysis. The report also discusses industry trends, Porter’s five forces analysis, along with an overview of the global wheat starch supplier market.

Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.

Report Coverage

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

Wheat Market Trend, Analysis & Forecast

Category Intelligence on Wheat covers the following

Information relating to market, supply, cost, and pricing analysis
Hard to find data on cost and TCO models, supplier details, and performance benchmarks
Macroeconomic and regional trends impacting cost, supply, and other market dynamics
Category-specific negotiation and sourcing advice

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Executive Summary

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Market Analysis

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Supply Analysis

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Cost & Pricing Analysis

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Best Practices

1. Wheat Market Executive Summary

1.1 Executive Summary
1.2 Global Wheat Market Overview
1.3 Contract Structures

2. Wheat Market Analysis

2.1 Value Chain Analysis
2.2 Wheat Starch Industrial Process
2.3 Global Market Outlook
– Global Supply–Demand Analysis
– Global Demand Analysis
– Global Wheat Trade Dynamics
– Global Wheat Starch Supply
– Demand Analysis
– Cost Structures

3. Wheat Regional Market Analysis

3.1 Regional Market Outlook (Russia, US, China, India, and EU)
– Supply– Demand Analysis
– Trade Dynamics
– Pricing Analysis
3.2 Industry Outlook (US, EU, and Asia)
– Porter’s Five Forces Analysis
– Innovations

4. Wheat Supplier Analysis

4.1 Global Wheat Supplier Market Share
4.2 Profiling of Major Suppliers
– ADM
– Cargill Inc.
– Roquette Freres
– Agrana Group
– Tereos SA
– Regional Suppliers

Wheat Global Market Outlook

The global production has been rising at a CAGR of approx. 2.58 percent over a period of five years. Production in 2017 – 2018 is estimated to be 758.24 MMT, a modest increase by 1 percent, due to high supply in the EU and Russian offset by lower harvest in the US
The key factors driving the growth 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
With respect to wheat starch industry, approx. 4.7-4.9 MMT is produced on an annual basis. The major producing regions are France, the US, Germany, the Netherlands, Australia, the United Kingdom, Belgium, Canada, Japan and China

wheat-global-market-size

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 benchmark, since Russia is the biggest exporter of wheat

Large buyers, who choose fixed-price short-term contracts (3 months), should enter into the contract on 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 percent over the past six years.
However, the global production is likely to decrease by 3.7 percent in 2018 – 2019 F, owing to abnormal weather conditions and likely reduction in yield in key producing regions, like the EU, the US, and Russia

Wheat Production by Country (2017– 2018 E)

The world’s wheat production is growing at a CAGR of 2.37 percent for the last six years, and around 70 percent of the total production is dominated by the top five wheat-producing nations
Among Asian regions, 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 percent in about over 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, experience a shortfall to reach 11.3 MMT in 2016– 2017, but they are expected to revive in 2017 – 2018 to reach 12 MM
Russia has increased its market share for exports by 10 percent over the last five years, growing at a CAGR of approx. 25 percent to displace the EU and US as the top exporter in the world
The EU exports have risen at a CAGR of 15.7 percent over the last five years, due to rich harvests in regions, like 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 percent between 2013 and 2016 and are 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 an import dependent
Russia and the EU incur export tariffs of 0 percent to Egypt, as the latter requires imports to meet demand