GOOD MORNING, Seasonal lows are sometimes set after the September or October reports, and it's always about fund flows and market reaction to the data. The Sep report was neutral to bearish for corn, but funds decided it was time to cover part of their short position when prices returned to contract lows setting the stage for an outside day of trade closing higher. However, the up-move started with beans yesterday as rumors floated on the trading floor that China had purchased beans off the PNW. Reuters later confirmed 600 tmt of beans were transacted for Oct/Nov delivery, with basis strengthening from +17 Nov to +33 Nov. This morning, China's state media, citing unidentified sources, said the gov. will...
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.