Markets do not often hit their daily trading limit, but corn got there today and there were mostly bulls across the complex. The trade had driven prices down despite strong fundamentals and buyers responded. Now after liquidating long positions the funds are rebuilding open interest. Today, the Export Sales report prompted corn to lead the way on a rebound that focused more on the bullish forces. The market went from believing that Chinese corn contract cancellations made economic sense to the realization they are still buying lots of corn. China may have put limits on free trade zones but if it did not need the corn, it would be spacing out its purchases to keep prices more in check. The International Grains Council (IGC) released new est...
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.