Key Market Developments Crude oil has been the architect behind the violent price swings seen across the grain markets over the last four trading sessions. Corn, soybeans, and wheat have been trading almost as a mirror to crude oil, with speculative capital moving rapidly between markets as energy volatility intensifies. The magnitude of these price swings highlights just how unstable the energy market has become. Prices traded near $55 per barrel in December, marking a five-year low, before surging to $119.48 on Sunday night. Within just two trading sessions, the market collapsed to $76.73, a move that briefly pushed crude through the 61.8 percent retracement near $79.60 of the broader rally from the December low. Buyers quickly stepped 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.