This month’s WASDE raised the all-milk price forecast for 2022 to a record high at $25.80/cwt. That was an increase of $0.75/cwt from the March WASDE. Milk production for 2022 is projected to total 226.3 billion pounds, 300 million pounds more than the March forecast, but about the same level as in 2021. According to the most recent USDA statistics in February, estimated U.S. milk production was 17.515 billion pounds, down 1 percent from February 2021. Milk cows totaled 9.370 million head, 96,000 head fewer than February 2021, though the February report showed 3,000 head more in production from January, which is the first month-over-month increase in the number of cows since May 2021 (likely due to the lure of higher prices)...
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.