Monday offered little reprieve from the CBOT’s recent trends with the selloffs in soyoil and wheat intensifying. Funds were net sellers in both markets, but for different reasons. In soyoil, the EPA’s latest renewable fuel volume mandates are, at least for now, perceived as bearish and the technical breakdown and position liquidation by heavily-long funds only adds to the weak price action. In wheat, Australia’s equivalent of the USDA raised its forecast for the country’s wheat crop, which added fundamental fuel to the bearish technical fire already consuming CBOT and KCBT futures. Corn extended its late-week weakness as well and soybeans abandoned higher trade to end lower on Monday too. The only real bright spot wa...
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.