Reports CTRM for Agricultural and Soft Commodities | Page 48
CTRM for Ags & Softs
The vast majority of wheat traded globally in any year comes from 6 regions – the US, Canada, Australia, the EU 27,
Russia and Ukraine.Given this geographic diversity, poor growing
conditions in any particular region that reduces crop yields will
Different consumption for the same
generally not have a significant impact on prices as the availability of
product (feed vs food, renewable).Wheat production from other unaffected regions, and the diversity of harvest
can be either allocated for human
times, helps the market maintain stability and absorb any supply and
consumption (food wheat) or by animals
demand shocks. The Northern Hemisphere countries will grow spring
and winter wheat crops, with the large Southern Hemisphere countries,
(feed wheat). It is not possible to match a
purchase contract destined for feed most notably Australia and Argentina, plant spring crops that are
harvested later in the year.Again, this diversity of geographic and
utilization with a sales contract destined
calendar supply helps producers react to price signals and increase
for food consumption. Thanks to a
planting, helping to ensure adequate supplies year-round.
matching matrix, Brady CTRM enables
the management of authorised and nonauthorised matching.
While a handful of nations dominate wheat exports, there are many
wheat-importing countries. North African countries, particularly Egypt
and Algeria, and the fast growing Asia/Pacific region accounts for the
Alison Ellmann - Brady
largest share of global wheat imports in the last several years.
Expected population growth in these regions over the next decade and
beyond, combined with limited land available for wheat cultivation, is
expected to drive additional demand for wheat and ensure an active and healthy market for global wheat trading.
Types of Entities Involved in Wheat Trading
Producers/growers
Elevators
COOPs
Agents
Brokers
Banks
Insurers
Traders and Merchants
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Inspectors
Exporters/Importers
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