Corn Market Gains Strength Basis levels in the Argentine new corn market had been dropping slowly because of a lack of demand. Nevertheless, as FAS prices remained quite stable, replacement levels increased quickly from -40 CK to a -5 CK FOB equivalent. Farmers did not want to accept the dip in world prices and did not sell any volume for a number of days. Pressure remained in the market due to long positions of traders who had purchased FOB cargoes at low levels only to sell those cargoes below replacement. After a few weeks of this, demand for the new crop appeared once again.There was a tender in Korea for which 180,000 MT were sold from South America CIF Korean ports at $312-317/MT. These cargoes are certain to be shipped from Argen...
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.