Long’s rush to the exit in CBOT futures continued Friday with the USDA’s Ag Outlook Forum (AOF) balance sheet projections weighing heavily on markets. March corn futures posted a new contract low in the first five minutes of the overnight trade on Friday and continued to post new lows throughout the day. Wheat followed suite and scored new contract lows with weakness growing in the Paris and three American futures markets. Soybeans managed to climb higher for the day, though the gains were a reaction to oversold conditions and will likely amount to no more than a dead cat bounce. Bearish outlooks and continued weakness were the themes for this week’s trade and the commodity market music doesn’t appear ready to change...
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.