As we have commented before, the market has had a chance to study the April WASDE, and the focus has now shifted to weather, new crop prospects, the Chinese economy and the ever present macro factors that affect non-commercial money flows into and out of markets. Perceived changes in any one of these market influences can cause grain and soy prices to make sharp, short-term movements. With soybean prices around $14.00 and corn prices bumping against $6.50, a "sharp, short-term movement" is often be measured in dimes rather than pennies.U.S. corn planting is off to a record-early start, although a weekend Midwestern rain event may cause a brief delay. Conventional wisdom says that: 1) early planting adds corn acres and subtracts soybean ac...
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.