Early morning fund buying pushed the CBOT higher and markets held onto those gains through the day’s trading. The failure of meaningful peace talks to develop in Ukraine over the weekend sparked a round of buying as the implications for continued war in the country are obviously bullish grain and oilseeds. After the early bout of fund buying, however, follow-through trade was limited despite bullish upside breakouts on both the corn and soybean charts. Declining volume and liquidity have been a feature of the CBOT in recent weeks as traders are finding it impossible to trade the headline risk associated with the war in Ukraine. Traders are cutting position sizes or not trading at all as the risk and higher margin calls offer a...
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.