The CBOT was mixed heading into the WASDE report with soybeans showing surprising strength and corn paring back some of Monday’s short-covering gains while wheat was flat/slightly lower. The WASDE produced the typical volatile reaction immediately after its release, but markets soon steadied and continued their prior trends. Funds were net buyers in the soy complex for the day, sellers in corn, and heavy sellers in wheat. The WASDE offered little to change the existing long-term trends for the major ag markets but did provide several important fundamental updates. The April WASDE is seldom a major market mover and that was largely true today as well. The major theme of the WASDE was smaller world carry-out for corn and wheat an...
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.