The CBOT was mixed trade Tuesday following the May WASDE and USDA’s first complete look at the U.S. and world 2025/26 balance sheets. With the WASDE’s numbers now incorporated into futures prices the trade began looking for “what’s next”, which for corn meant a bearish view of the weather and new crop supplies. The soy complex found support from rumors of a possible four-year extension of the 45Z tax credit and from caution about USDA’s new crop balance sheet, which features optimistic yield forecasts. Wheat was the oddball for the day as it defied the WASDE’s bearish numbers and focused on some of the concerning weather issues around the world to create a bullish reversal on the charts. The day fea...
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.