The CBOT opened weaker overnight and kept that tone for most of the day. Soybeans and wheat managed higher closes based on some spread trade, while soymeal continued its decline. Most of the day consisted of pricing weakness but a late day buying spree pulled several contracts to higher closes. Many commodities made technical “hook reversals”, which suggest support is entering the market. The coronavirus is reportedly holding up offloading of some shipments of agricultural products, including palm oil, at Chinese ports. Moreover, the virus reportedly has Chinese officials inquiring about the possibility for adjustments to Phase One trade deal commitments under a clause in the agreement that states the two countries can co...
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.