The markets were called mostly lower after the long holiday weekend with funds continuing to be net sellers and coronavirus news remaining bearish for commodity demand. The markets opened as called with some bear spreading in corn/wheat and corn/soybeans that eventually gave way to dominant selling in the soy complex. Wheat prices found support on news of exports to China and forecasts of freezing weather across the HRW-growing region this week. The COVID-19 pandemic seemed to set its sights on the meat packing industry over the weekend. News came that Smithfield would suspend operations at its Sioux City, South Dakota plant for three days for cleaning after a spike in positive coronavirus cases from plant employees. According to WPI...
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.