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Market Commentary

While awaiting today’s WASDE, grains and soy markets traded a bit higher overnight as they tried to recover at least a small portion of yesterday’s trade-related beating. Soybeans and Chicago wheat were both up about 6 cents, and corn gained around 3 cents. Yesterday’s steep losses were no doubt an overreaction. However, the Trump administration’s plans to put 10 percent tariffs on another $200 billion of imports from China and Beijing’s promised response seem to emphasize that there is little chance of an early end to this bilateral trade conflict, and this is despite the likelihood that the latest moves will have a larger, more immediate impact on U.S. consumers and those Chinese companies producing consumer...

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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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