World Perspectives
feed-grains soy-oilseeds wheat

Market Commentary

Funds were net sellers in a day that bears regained the fundamental advantage. With China having claimed yesterday to officially suspend its purchases of U.S. agricultural goods, demand destruction now reigns supreme in the market’s mind. If China truly avoids U.S. ag commodities, the odds are poor that all other countries importing U.S. products can make up for the trade war damage. Consequently, with China sidelined until trade talks restart, the only probable market shock that could spark a rally would be weather-related supply losses. Presently, NOAA’s long-lead forecast suggests the major U.S. crop-growing regions will have normal temperatures and average or above-average precipitation possibly into October. There is some...

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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.

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