It was one-sided trading at the CBOT today with nearly every market flashing sell signals. The sell-off has been blamed on end-of-the-month selling/positioning, mild summer temperatures, and fund liquidation, so the true driver is probably a combination of the three along with other factors. Regardless of the reason, new crop corn, soybeans, and wheat all tumbled to double-digit losses. The weather outlook for the U.S. remains broadly favorable with below-average temperatures and average to above-average precipitation forecasts. The eastern Corn Belt will receive scattered showers, while parts of Nebraska, Kansas, and Missouri will have moderate/heavy rainfall. The rains may slow the winter wheat harvest in areas but will be supportive to...
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.