Friday’s WASDE was bearish corn and soybean futures, but you wouldn’t know that from Monday’s price action. Both markets turned higher with meaningful strength as tight old crop stocks and a technical rebound from oversold conditions and technical support boosted values. The WASDE was, of course, bullish wheat markets and they responded accordingly, with 20+ cent gains for the day. Livestock markets joined in on the bullish chorus after USDA shaved back production expectations for hogs and cattle in 2023. The weekly Export Inspections report was neutral soybeans and wheat while being bearish corn. Corn inspections were up from the prior week but still below the target needed to keep pace with USDA’s forecast. Soybea...
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.