World Perspectives
livestock

Neutral Cattle on Feed Report

USDA released its monthly cattle on feed report today showing a total inventory of cattle and calves in feed yards of 11.9 million head on 1 November, which is slightly (25,000 head) below last year.  All categories were well aligned with the pre-report expectations - another sign that cattle markets are back in balance, except that there was a wide range of placement guesstimates, from 99 percent to 105 percent of last year. With the average guess at 102 percent, however, it’s clear there was a consensus around placements. As we’ve noted before, the pre-report estimate is based on the Olympic average (i.e., eliminating the high and the low before calculating the average) of the various analysts’ forecasts. The ave...

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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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