Grain gains: Revenue forecast to grow moving forward with increased downstream demands

The Corn, Wheat and Soybean Wholesaling industry has had to contend with difficult market conditions over the five years to 2018. As a result of declining agricultural prices and extremely weak demand, industry performance has been particularly soft, resulting in overall revenue declines. Due to the extreme oversupply and weak supply utilization in the US, end stocks of industry products have increased, which has denied the opportunity for greater price appreciation and increases in industry-specific revenue. Moreover, according to the US Department of Agriculture (USDA), demand for industry products as feed grains has declined to the lowest level since the 2007-2008 observation period, which has undercut industry revenue performance and exacerbated price declines...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Industry performance has been particularly soft, but the industry returned to growth in more recent years
  • Biofuel production has played a large part in the performance of this industry
  • The federal government imposed renewable energy quotas
  • Industry Report - Industry Locations Chapter

    The spread of corn, wheat and soybean distributors in the United States closely follows the main crop growing areas. Grain wholesalers locate close to upstream suppliers to cut the cost of transport for farmers and wholesalers alike. There is also a close relationship between farmers and distributors because many of them are part of an integrated farming cooperative that enables agricultural commodities to be sold through the co-op. As a result, the Plains (45.9%) and nearby Great Lakes (23.8%) regions dominate the industry. This high concentration has remained generally unchanged over the past five years. Illinois (12.5%) and Iowa (11.8%) account for more than 20.0% of establishments each, yet have only about 5.0% of the US population combined.Since the Southeast (8.5%) ...purchase to read more.

    Additional Insights for the Corn, Wheat & Soybean Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Corn, Wheat & Soybean Wholesaling Industry are

  • Effective cost controls
  • Having a good technical knowledge of the product
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as Demand from animal food production and Price of corn in the Corn, Wheat & Soybean Wholesaling industry impact industry performance..

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    What's in this report

    What is the Corn, Wheat & Soybean Wholesaling Industry?

    Operators in this industry purchase and distribute grains such as corn, rice, wheat, dry beans, soybeans and other inedible beans. They distribute these products to food processors, industrial manufacturers, animal feed producers, exporters and other buyers. The industry includes players that operate grain elevators for bulk wholesale, but excludes players that operate grain elevator establishments for storage. Wholesalers of field and garden seeds are also excluded from this industry.

    Industry Products
  • Corn
  • Soybeans
  • Wheat
  • Sorghum
  • Oats and barley
  • Seeds, Beans and Rice
  • Industry Activities
  • Distributing grains
  • Distributing edible and inedible field beans
  • Operating country or terminal grain elevators, primarily for the purpose of wholesaling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from animal food production
  • Price of corn
  • Demand from cookie, cracker and pasta production
  • Price of coarse grains
  • World price of soybeans
  • World price of wheat

  • Current Performance
  • Weak downstream demand
  • Renewable Fuel Standard
  • Consolidation fails to lift prices
  • Chart: Revenue Growth

  • Industry Outlook
  • Biofuel demand to accelerate
  • Stagnant profit
  • Exporting to meet demand
  • Table: Corn, Wheat & Soybean Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Corn, Wheat & Soybean Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Flour Milling
  • Margarine & Cooking Oil Processing
  • Cereal Production
  • Chocolate Production
  • Frozen Food Production
  • Cookie, Cracker & Pasta Production
  • Snack Food Production
  • Seasoning, Sauce and Condiment Production
  • Baking Mix & Prepared Food Production

  • Key Selling Industries
  • Corn Farming
  • Oilseed Farming
  • Rice Farming
  • Soybean Farming
  • Vegetable Farming
  • Wheat, Barley & Sorghum Farming

  • Products & Services
  • Corn
  • Soybeans
  • Wheat
  • Seeds, Beans and Rice
  • Sorghum
  • Oats and barley
  • Chart: Corn, Wheat & Soybean Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wholesalers for resale
  • Exports
  • Farmers for use as input
  • Other
  • Manufacturers for use as input
  • Chart: Major Market Segmentation for the Corn, Wheat & Soybean Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Additional expenses
  • Chart: Cost Structure Benchmarking – Sector vs Corn, Wheat & Soybean Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Corn, Wheat & Soybean Wholesaling Industry

  • Industry Globalization
    Archer Daniels Midland Company, CHS Inc., Cargill Inc.,
  • Table: Archer Daniels Midland Company - financial performance
  • Table: CHS Inc. - financial performance
  • Table: Cargill Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Corn, Wheat & Soybean Wholesaling Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Corn, Wheat & Soybean Wholesaling Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • World Price of Wheat (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Genetically Modified (Gm)
  • A technique where specific changes are introduced into a plant or animal's DNA by genetic engineering techniques. The most common modified foods include soybean, corn and canola.
  • Grain Elevator
  • A transportation terminal in which grain is moved from a lower level by a conveyor or elevator to a silo or other storage location.
  • Markup
  • Amount added to the cost of inputs to determine the price of goods sold. This plays a large part in determining profit for wholesalers.
  • Oilseeds
  • Class of seeds from which oil can be produced. The main oilseed sold by this industry is soybeans.
  • Wholesale Bypass
  • Practice of downstream buyers sourcing products directly from producers or to minimize costs and maximize profit.
  • What Our Customers Say

    Why buy this report?

    The Corn, Wheat & Soybean Wholesaling industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

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    This report on Corn, Wheat & Soybean Wholesaling:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Corn, Wheat & Soybean Wholesaling market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Corn, Wheat & Soybean Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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