Recent developments impacting the U.S. energy sector have changed the dynamic of the global market. This will likely lead to the U.S. becoming a net exporter of energy for the first time since 1953.According to the S&P Goldman Sachs Commodity Index (GSCI), prices in the energy sector rose 48 percent from 4 January to 30 December 2016, leading the growth in commodity prices. Crude oil was at a 13-year low in January and February 2016; for context, that period includes the aftermath of the 9/11 terrorist attacks on the U.S. when air travel and other types of fuel use had not yet fully rebounded. Fast forward to last year when developing countries experienced renewed economic growth as the U.S., China, Canada and Venezuela slowed their com...
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.