Overnight trading saw prices mostly lower as wheat futures came under pressure from the advancing HRW harvest. Trading volume was moderate overnight as funds continue to liquidate long positions. Open interest is growing for corn and wheat, likely indicating that end users are extending coverage on the CBOT’s recent break. Of the major agricultural commodities, only soyoil managed to find overnight support, as higher palm oil futures helped encourage long soyoil/short soymeal spreads. The day session once again featured sharply lower wheat prices and a weaker soy complex as well. Corn managed to find a bid and closed a few pennies higher as traders digested the decrease in crop conditions ratings. Commercial pricing also...
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.