GOOD MORNING, The USDA report sent prices sharply higher yesterday and the market will need a few days to digest the numbers. Charts did a sharp U-turn from Tuesday morning lows with recent shorts covering on the back of bullish numbers. New money was noted coming into December corn and November beans, setting off outside days closing higher which typically finds follow-through, as it is this morning. The worries over drought in the western states are magnified given the lower total acreage numbers. Western states account for around 23% of bean acreage and almost 20% of corn. Bottom line is that the US needs good weather for July and August with near or above beginning trendline yields. While we may get...
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.