Friday’s market weakness carried over into Sunday night’s trade and that of Monday’s day session. Nearly every grain/oilseed market broke sharply lower and posted significant losses for the day. The livestock complex was one of the few at the CBOT/CME to trade higher for the day. Weakness in global vegoil markets was responsible for the soy complex’s collapse while improving weather forecasts for the U.S. (better rains for the Upper Midwest this week and the Corn Belt next week) pressured the corn market. Brokers estimate funds sold 30,000 contracts of corn on Monday and 20,000 contracts of soybeans. Funds also sold 10,000 contracts of soyoil and a similar volume of soymeal contracts. Funds were net sellers of some 7...
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.