The CBOT was mostly higher to end the week with wheat leading the way once again. Corn futures settled cautiously higher with ample position evening with the August WASDE coming up next week. Soybeans and soyoil were higher on rumors of Chinese buying and rising Brazilian export prices. A weekend weather forecast that includes rains for the Midwest capped rallies, however, with the wetter, cooler near-term weather pattern likely to aid soybean yield potential. The index fund roll is underway, which is pressuring September/December futures spreads as fund managers roll out of September positions into December futures. Any spread weakness should be limited and short-lived, however, given China’s likelihood of rapidly increasing i...
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.