Over-bought is over and so is over-sold. The lows in the overnight session set up the day for mostly a recovery trade. Today’s bounce in corn and the soy complex was a defense of current ranges and things should stabilize and thin out as the trade heads into a holiday weekend in the U.S. and an even longer break in China. The focus turns to South America where delays are keeping Chicago on its toes. South American farmers are forward selling more than usual since they know where this market is eventually going. There are still risks but there is an adage that farmers kill their crop at least three times each season. They plant because they are optimists, and then they focus on all the risks as they psychologically prepare for w...
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.