GOOD MORNING, The May WASDE has come and gone, and technically the markets did not break down. Quite the contrary, as the focus of the report was huge ending stocks in corn, which were by and large not achieved. There has already been a rush to the downside courtesy of Covid-19, and lower ethanol usage factored in to today's lower prices. Once the largest number is advertised, the onus is on the market to achieve it, and for the bear that fell short. While corn prices saw net short-covering, beans spent the majority of the session working to value current trading range levels as funds hold a modest only long position. Wheat futures had the most bearish slant, and fell to new lows as the first forecast of the 2...
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.