The CBOT opened on a firm note with funds covering part of their short positions ahead of the May WASDE. Cold weather forecast for most of the Midwest and eastern U.S. over the weekend also put a bid under the market, though gains were limited in corn and wheat. Rumors of Chinese soybean purchases/buying interest pushed the soy complex higher, along with technically driven buying. Overall, CBOT trading volumes were muted as traders focus on adjusting positions ahead of the WASDE. Deliveries against May grain futures remain surprisingly light with no receipts tendered for corn, soybeans, or wheat after yesterday’s close. May soyoil futures saw 56 deliveries as basis for that commodity remains strong. The lack of deliveries helpe...
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.