Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

Commodity: Wheat/Corn

No description
by

sorrentino fabrizio

on 27 May 2015

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Commodity: Wheat/Corn

Commodities:

h e g
Haute école de gestion de Genève
Geneva School of Business Administration
h e g
Students:
Laura Boschung - Fabrice Habluetzel - Fabrizio Sorrentino
Subject
: Commodity Trading
Lecturer:
Piller Robert
'
Wheat
Corn
Market structure
Price
Thank You
any questions
?
One more thing
.
.
.
South America
North America
General Presentation
Definitions
&
Different Varieties
History of Wheat
& Corn Trade
Specifications
Exporters
Producers
Producers
Wheat
Corn
Market price overview
Place traded
Price trend
Closing CBOT Corn price: $USD 180/mts
Closing CBOT Wheat price: $USD 177/mts
"World exports of agricultural products in 2012"
US$ 1,657 billion
source: WTO international trade statistics 2013
Howie Hubler (Morgan Stanley)
Jérôme Kerviel (Société Générale)
(US$ 16.22 bn)
2008
The construction of the new HEG building
(49'568'000 F)
The most expensive car in the world
(US$ 28 500 000)
58'140 X
Ferrari 250 GTO
33'428 X
100 X
Corn:
- Mainly used for animal feed
- Trade: mainly dominated by the U.S.
- Corn Belt
Wheat :
- Various features and usages
- 6 official different types
Basic nutritional need for humans & animals

Easy to produce, seasonal commodities

Substantial constraints

Food security policies

Logistics investment

US subsidies

Storage

Exporters*
Importers*
Consumers
U.S
China
EU
Brazil
Livestocks and the ethanol sectors are the most demanding sectors for corn in the United States.
Importers

"The main leaders own 80% of the total world export"
increasing demand for meat (large scale poultry, pig farming) has been one of the main influential factor in the level of corn import trade.
Main influential factor :
Consumers
Wheat is the most traded cereals in the world.
Chicago Board of Trade (CBOT)
The London Stock Exchanges
Kansas
Corn is the most produced cereals in the world.
60% animals feeding
30% ethanol production
London-based Euronext-LIFFE
Key Drivers
Developing economies seek food security
2012, US hit by worst drought in 25 years
(78% of US corn crop had been damaged.)
80% human consummation
(People in developing countries spend up to 80% of their money on food)
a growing middle-class in china and India
(U.N estimated 50% more food will need to be produced by 2030)
Countries keep most of their crop for domestic needs
Worldwide Wheat/Corn produced vs. Wheat/Corn traded, 2007
Source: USDA, World Bank, Bloomberg, IGC, FAO
+/- 20%
1996-2011: Wheat Major Importers (South, East, South-East Asia, Black Sea region North Africa, Middle East & Developing Countries)

1972-1995: Wheat Major Importers (South, East, South-East Asia, Black Sea region, North Africa & Middle East)

1961-1971: Wheat Major Importers (EU, South, East, South-East Asia & North Africa, Middle East)

1961-2011: Wheat Major Exporters (U.S., EU, Canada, Australia, Argentina*)

1961-1979: Corn Major Importers (EU: Italy, Germany & UK, Japan)

1961-2011: Corn Major Exporters (U.S., Argentina, France)

1980-2001: Corn Major Importers (Japan, Black Sea Region, South Korea, China)

2001-2011: Corn Major Importers (Japan, South Korea, Mexico, EU)

Evolution of Corn Trade Flows
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Evolution of Wheat Trade Flows
Source: FAOSTAT, 2014
Source: FAOSTAT, 2014

.
.
.
.
.
.
.
.
.
.
.
.
.
o
o
o
Wheat
Corn
Russia's ban on wheat export
(highest temperatures recorded in 130 years)
H1N1
Swine Flu
High oil prices
2012, Protests in Egypt
2012, Low stocks
(one of the world's biggest wheat importers)
Pasta
(110)
Müesli / Cereals
(104)
Cereals bar
(28)
@ COOP
Corn
Wheat
Russia export ban is set to end on 1 July 2011
Between 2005 and 2010 Wheat +115% & Corn 204%

High demand from Asia
Financial Crisis
Bio fuels in Europe and US

Climate change, droughts in Australia, Ukraine
High Oil price (US$140 a barrel between 2007/08)
World Bank injected US$ 1.2 billion in fast-track facility, seeds and fertilizer, and irrigation for small-scale farmers
The central bank allocated US$6 billion between 2008 and 2009 at the agriculture development
30 % of the corn price increase between 2000 and 2007.
2008, U.S increase their subsidies for corn
Source: USDA, 2014
300
212
76
55
Source: Longshore & Shipping News, 2012
World
EU
China
India
US, Ru*
711.9
142.9
122.0
92.5
58.0
121.5
121.0
92.0
33.5
Source: Cyclope, 2014
2013/2014
US
EU
Canada
Australia
Russia
Egypt
Brazil
Indonesia
Algeria
Japan
31.5
27.5
22.5
18.5
16.5
10.5
7.5
7.2
6.5
6.2
Source: USDA, 2014
2013/2014
Mt*
World
US
China
Brazil
EU
966.6
353.7
217
70
64.7
2013/2014
*US, Producers/Russia Consumers
US
Brazil
Ukraine
Argentina
41.0
21.0
18.5
13.0
Japan
Mexico
South Korea
Egypt
15.5
11.5
9.5
6.2
Source: USDA, 2014
2013/2014
Better situation on the financial market
Source: FAO, 2013
* between 2000-11
2011, Arab Spring protests
US drought in corn production
Excess wheat stocks
Exceptional good weather
Record harvest in Russia, Ukraine, US, EU
EU policies(full trade pact):
Duty-free import quota
Increase EU demand
mid-2010 to mid-2012 Corn price +120%
Corn: 3.2275 cents/bushel = $127/mts
Wheat: 4.8275 cents/bushel = $177/mts

US inland price
Full transcript