Trade at the end of the Christmas week was defined by strong soyoil and wheat values while soybeans and meal turned lower. Corn and soybeans are near the top end of their fundamentally justifiable trading ranges (at least based on current expectations of supply/demand), and technical resistance/profit taking in soybeans pushed that market lower. Funds are certainly supporting the soyoil and wheat markets but long interest in corn and soybeans remains tepid. Overall, however, the markets remain well-bid and there seems to be a growing expectation that 2020 demand for ag commodities will be strong and above 2019 levels. The weekly Export Sales report showed disappointing sales and exports for corn, continuing the theme of the MY 2019/2...
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.