General Comments The InterContinental Exchange (ICE) announced that subject to CFTC approval it plans to launch new futures contracts for corn, wheat, soybeans, soybean meal and soybean oil. It hopes to begin trading the new contracts on 14 May with options trading to commence on 15 May. Trade in the proposed contracts would be entirely electronic. They would be cash settled based on CME settlement prices.The ICE has been nipping at the CME's heels for some time. When the CME and CBOT had reached their original agreement under which the CME was to acquire the CBOT, an unsolicited offer for the CBOT by the ICE forced the CME to raise the already agreed purchase price substantially or face the risk of being turned down by CBOT members/shar...
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.