The dryness in Brazil’s soybean production areas is worth watching because there is a history to the situation. There are not the La Niña conditions for a larger adverse impact, but Brazilian soybean yields have historically been lowered when spring rains fail to provide enough moisture. In 2011, La Niña struck South America and the drought in Brazil was said to be worse than the 2008/2009 event. Between mid-December 2011 and early January 2012, the Department of Rural Economy (DERAL) raised the amount of soybeans rated in medium/bad condition from 18 percent to 32 percent, while lowering crops rated in good condition from 82 percent to 68. Yields that growing season fell 15 percent from a year earlier to just 2.6...
Key Market Insights The broad market is locked in on this week’s Trump-Xi meeting in Beijing, but this is no longer just a trade summit. Increasingly, the meeting is becoming tied directly to Iran, energy security, and the growing global economic fallout from disruptions through the Strai...
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.