As we sink further into December, grain and soy futures markets continue their directionless up and down pattern within current trading ranges. Exciting they are not! The only comment we care to offer is that they seem to go down more easily than they go up as yesterday’s price action demonstrated. The only two things that might generate more movement are a phase one trade agreement with China or conversely a breakdown of negotiations. The other market key is South American weather—a continuation of favorable Brazilian weather, and more rain for Argentina following yesterday’s unexpected showers, or alternatively crop damage from a siege of unfavorable dryness possibly accompanied by heat. In the absence of price directio...
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.