The CBOT was sharply lower on Tuesday as traders reacted to the USDA’s Crop Progress report, in which corn, soybean, and spring wheat conditions and development were highly favorable. That, combined with high corn yield and soybean pod count estimates from various crop tours sent the markets lower. Funds were net sellers for the day with weak technicals – especially in wheat – justifying much of the action. Other than the news of soybean export sales to Mexico, there was little fresh news for the commodity markets, which meant that the crop tour chatter created an outsized impact. Overall, the day’s trade seemed to confirm the lingering presence of bearish sentiment for corn and soybeans while highlighting the ongoin...
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.