The CBOT was mostly lower on Tuesday with risk-off trade and seasonal factors driving most of the day’s action. The markets are also seeing a good bit of repositioning heading into first notice day on Friday, which helped drive heavy-volume trade and some of spread trade dynamics. The soy complex saw some interesting strength, however, that helped push soybeans and soymeal to form bullish semi-reversals on the charts. The seasonal patterns in the major commodity futures favor a selloff from now into early April but the soy sector technicals are pointing to something possibly different. Much will depend on the USDA’s pending acreage outlook in the Ag Outlook Forum that will occur later this week. Weather forecasts continue...
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.