GOOD MORNING, The markets will open on a mixed note today, with end-of-month profit-taking probably providing two-sided trade. Funds exit the month with an estimated long 25K wheat contracts, 80K long soyoil, short 120K corn, 50K short beans, and short 40K meal. The largest losing position is now in soyoil, which is creating further downside momentum. Prices stumbled for beans this week on the back of poor export sales, harvest pressure, and lack of Chinese buying activity. China may be on holiday, but no doubt they are watching and lower prices could be a good thing moving into early Feb. should they decide to purchase. A weaker Brazilian currency brings in another element of pressure, as the weaker va...
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.