The French Rivera meets the Midwest: Monte Carlo simulations of U.S. corn and soybean yields.The world’s most famous casino, the Monte Carlo along the French Rivera, may seem far removed and irrelevant to American corn and soybean yields. However, its name is forever tied to a statistical method for estimating the probability of an event’s occurrence. Engineers developed and used Monte Carlo methods during WWII for the Manhattan Project, but the technique now enjoy a wide range of applications, including the forecasting of corn and soybean yields.To conduct Monte Carlo analysis, one needs a probability distribution with a mean and standard deviation. From there, random “draws” (simulations) are generated and typically used to calculate the...
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
Infrastructure investment due diligence
On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.