Some bullish factors in the U.S. include cheese and butter stocks in cold storage as of July that are at levels below the five-year average, which pushed up prices for both above projections. Moreover, the strength of the U.S. dollar has added to the gap between U.S. and global prices. Bearish Global Dairy Market Won't Slow U.S. Production Rabobank has issued a report on global dairy prospects that predicts at least a year of low prices for milk. Key factors are a reduction in Chinese imports, the current embargo Russia has placed on EU dairy products and the approaching end to EU dairy quotas. EU production is up more than 5 percent in 2014, and this month will see increased seasonal production in the Southern Hemisphere as New Zealand w...
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.