World Perspectives
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Debates Over Yields

The August WASDE was filled with surprises compared with general expectations ahead of its release, and almost all either directly or indirectly concerned USDA’s yield estimates. Headlining the surprises, at least in the market’s eyes, were the estimated record-high U.S. corn yield of 178.4 bushels/acre (BPA) and the near-record U.S. soybean yield of 51.6 BPA. Both estimates are roughly 2 BPA higher than the average pre-report trade consensus and were based on the first crop surveys of the season. That 2 BPA gap is also significant, evidenced by the sharply bearish reaction of futures market prices last Friday. Perhaps USDA’s big corn and soybean yield estimates should not have been quite so unexpected in hindsight. The w...

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Illuminating the value of technical research

On behalf of a commodity producer organization, WPI evaluated the outputs from a project that featured a $5 million investment into technical research over multiple years. WPI’s team captured the results of this extensive effort and synthesized them for presentation to the organization’s governing board; among the findings uncovered and presented for the first time was the development of genomic traits proven, via rigorous testing, to provide crop yield advantages of 50 percent or more to U.S. farmers in times of drought. Capturing measurable results from long-term efforts can be challenging. Educating clients on the dynamics of success measurement when quantifiable results are not readily available requires deep client-consultant collaboration and an ability to consider both near- and long-term client aspirations with market/policy dynamics – attributes that WPI brings to every consulting engagement.

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