Can a commercially useful world wheat contract be created? It would have to be a contract that attracted widespread commercial participation from buyers and sellers and with a consistent level of trading volume large enough to appeal to speculative interests as well.The difficulty of hedging or offsetting price risks involved in the world wheat trade was emphasized in this Common Thread spot a week ago. It was pointed out that trading volume in Chicago Mercantile Exchange (CME) wheat futures contracts representing U.S. soft-red winter wheat (SRW) exceeded that of any other wheat futures market in the world by far. The CME’s SRW wheat contract is where speculators in wheat go to play, and it attracts the largest trading volumes and liquidity...
What You Need to Know Today: A third U.S. border crossing (Columbus, New Mexico) has reopened to Mexican cattle imports following nearly two years of restrictions related to New World screwworm. The reopening could gradually improve feeder cattle availability, although more than 60 confi...
Yesterday, the USDA’s Agricultural Marketing Service (AMS) released a new report of negotiated cash purchases of cattle under the mandatory price report. The report included Colorado, New Mexico, Oklahoma, Texas, and Kansas. The goal of the report was to solve the confidentiality issues e...
Key Takeaways: U.S. soybean crushing began in 1911 and saw its most rapid expansion during the 1930s amid the broader agricultural and technology revolutions of the time. After peaking in the early 2000s, the soybean crushing industry went through a downturn as poor crush margins forced...
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.