Uncertainty remains the key certainty going into 2014.Two seemingly conflicting forecasts for 2014 involve concurrent value accretion for the U.S. dollar and ag commodities such as corn, wheat and sugar. The Bloomberg survey of analysts sees declines in soybeans. This is all driven in part by foreseen improvement in U.S. and global economic growth that boosts the dollar and the demand for commodities. Trade policy changes in the pipeline will arrive too late to affect 2014 very much, and forecasters say the 2010 stated goal of the administration's National Export Initiative (NEI), of doubling U.S. exports by 2015 is now unlikely to come to fruition. WPI had noted back when the NEI was announced that it would require a substantial fall in th...
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
Monday, 25 May is a U.S. holiday, and both the markets and our office will be closed. Please note that the next issue of Ag Perspectives will be published on Tuesday, 26 May. The WPI staff wishes everyone a safe and enjoyable holiday weekend...
USDA’s monthly cattle on feed report was released today. The total number of cattle on feed in feedlots with 1,000 head or more capacity amounted to 11.6 million head, 102 percent of last year. Source: USDA, WPI Placements were up, but part of that is attributable to persistent drought c...
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.