What goes up must come down, but this is still a sideways market at worst. Bulls must be fed and there were no big sales and instead it was profit taking. The key question is how shallow or deep is support and the answer is where bottoms hold. Today some bottoms were tested but unless one is greedy, markets are still in relatively lofty territory. The near- and long-term story remains South America. The U.S. crushing industry may have set a record in October and if so, it can partially thank Argentina. World demand is up but Argentine farmers are not letting go of their soybeans, the ports are on strike, and there was an accident at one of the working plants. South America could still kill this current bull run. The weather is suboptimal b...
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.