With the September WASDE now past, the CBOT largely entered consolidation mode on Tuesday with a renewed focus on weather as yields are finalized, export demand, and, of yeah, inflation. August inflation was down from July but above expectations, which threw macroeconomic markets into a tizzy and sent the U.S. dollar screaming higher. The dollar’s rally pushed November soybeans to form a reversal on the charts and kept corn from advancing above the $7.00 level. Wheat managed to post slight gains for the day, with support coming from a shaky outlook for Ukraine’s exports and dry planting conditions in the Plains. The theme of the September WASDE was lower production and ending stocks for corn and soybeans, a fact that should keep...
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.