China Enters Peak Season for Corn Purchases Corn prices and domestic sales volume in northern and northeastern China, the country's major corn production areas, have increased recently. By the week of 25 March, local growers in Northeast China reportedly had sold 40 percent of their crops (versus 20 percent a month ago), and northern growers had sold nearly 70 percent. A large amount of crops from Northeast China with high moisture content flowed into the market by the end of March, leaving a significant price increase in dried corn.However, increasing corn prices and weak demand for processed products have greatly diminished processors' profit margins. During the last week of March, the profit margin for starch processing in Shandong fe...
What You Need to Know Today: Cattle futures extended their sharp selloff Friday as weakening cash cattle prices, deteriorating feedlot profitability, and reduced packer demand continued to weigh on the market. The inability of futures to sustain a rally following last week's bullish Cattle on...
As predicted, the Federal Reserve held rates steady at the last meeting before the midterm elections, likely in part because of the election (see WPI 19 October and 22 September). The decision comes at the tail end of a midterm election cycle that has been marked by the two parties campaigning...
Key Takeaways: WPI’s new EU rapeseed crushing margin models point to weaker processing returns over the next four months due to higher rapeseed procurement costs and weaker product values. Statistical forecasts call for German crushing margins to decline from €181/MT to €...
From WPI Consulting
Forecasting developments in production agriculture
On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.