General Comments It was the final day of USDA's Outlook Conference, and their corn and soybean projections were bearish with forecasts for a record U.S. corn crop (14.5 billion bushels) and a record soybean yield per acre. Their U.S. wheat numbers were actually slightly friendly, with a reduction in 2012-14 ending supplies from the current year. It was also the final trading day for options on March futures contracts, and that seemed to create even more volatility in the March soybean contract, which traded as much as 29 cents higher overnight and was trading lower by noon. Wheat and corn futures didn't do much but watch the soybean complex fly around.Weekly export sales were below expectations for soybeans, but above expectations for...
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.