The CBOT was mixed on Tuesday with the three legs of the soy crush all trading lower amid technical selling and a steep selloff in crude oil values. In contrast, the wheat market managed to shrug off Monday’s dramatic declines and push higher with signs that world demand is starting to increase. Corn was a bit caught in the middle but found its way to higher ground amid strong U.S. export demand and a challenging weather forecast for Brazil over the next week. Funds were surprising net sellers in the soy complex and were more committed buyers in wheat than many expected after Monday’s selloff. Markets are entering the seasonal slow period for news headlines, which means what headlines do develop have an outsized impact on price...
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.