World Grain - International Buyer's Guide 2015 - 6

FROM THE EDITOR

Industries flourishing in
changing environment

n recent years, the grain and oilseed
markets have ridden a wave of high
prices and volatility, while global ending
stocks went the opposite direction with
supply struggling to keep up with demand.
But as we enter 2015, a different scenario is
emerging with global stocks rising and grain
and oilseed prices dropping to their lowest
levels in several years. The Food and Agriculture Organization (FAO) noted recently that
grain stockpiles are at a 15-year high, with the
FAO predicting that global grain stocks will
jump 8% to 624.7 million tonnes at the end of
2014-15. The global grains stock-to-use ratio
is forecast to climb to 25.1% in 2014-15 from
23.5% a year earlier, the highest it's been in
12 years. The agency's index of world grain
prices stood at 178.4 points in October, down
33% from a June 2008 record.
Experts say that barring a major weather
event, this trend should continue for the
foreseeable future.
During the Oilseed & Grain Trade Summit
in October in New Orleans, Michael Swanson, ag economist and senior vice-president
of Wells Fargo Bank N.A., discussed this
changing dynamic and noted that while it may
not be a great time to be a farmer, he would
certainly be optimistic if he were the CEO of
a company that sells grain storage and handling equipment.
"I think selling grain bins is a great spot
to be in right now," Swanson said. "They're
projecting a 14.4 billion (U.S. corn) crop
and a terrible basis. They can sell grain bins
all day long. If I'm a grain bin seller today,
I'm going to make my goals."
Indeed, the grain storage and handling
companies that World Grain has spoken to
in recent months have expressed optimism
about their business outlook in the near future. The United States and Canada, two
of the world's major grain producers, have
posted record harvests the last two years.

Production was also above average this
year in Europe and the CIS region and business is also good in South America, which
continues to churn out massive harvests
year after year.
In fact, all of the industries World Grain
covers - grain, ﬂour and feed - are healthy
and expanding. And much of this supplemental issue is dedicated to supplying information on the companies that supply equipment and services to those industries.
Our products showcase section, which begins on page 44, highlights the newest products and services for the global grain, feed
and ﬂour milling industries. The issue also
includes a 2015 calendar of industry events
to aid in your business travel planning. Contact information for grain terminals, associations and trade groups is also listed. On page
8, you will ﬁnd an index to all World Grain
articles from 2014 to help you quickly locate
speciﬁc stories from recent issues.
We are proud to be associated with these
great industries and look forward to serving
your information needs in the coming year.
Best wishes in 2015!
Arvin Donley
Editor, World Grain

Chairman
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Charles Sosland
Dan Flavin
Adam Ungashick

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PUBLISHING STAFF
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