With the excitement of the Phase One deal fading into the rearview mirror, the CBOT was broadly lower again as traders and analysts attempt to pencil out the agreement’s impacts on agriculture. Disappointment about the (expected) lack of commodity-specific details left corn and the soy complex to drift lower for the day. Once again, wheat was the upside leader with March Chicago futures posting a new high for their move after technical considerations strengthened overnight. The soy complex came under some pressure today as buy wheat/sell soybeans and/or corn trade developed. With the Brazilian and Argentine crops looming, it will be difficult for corn/soybeans to make a sizeable rally without exports supporting the market. The Phase O...
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.