Energy versus Ag The Biden White House is reportedly undecided over biofuel blend mandates for 2021 and 2022 and is being asked to intervene in Mexico’s effort to renationalize its energy industry, neither of which speaks well for agriculture. Reports say the White House is torn between fuel distributors who do not want to blend in expensive ethanol and other biofuels, and the rural states that see such blending as key to profitable farming. The indecision seems illogical from an Administration that seeks to reduce carbon emissions and promote renewable energy. It similarly seems implausible that the White House would intercede on behalf of the oil industry when it comes to Mexico’s energy sector but not take an aggressive posi...
Key Takeaways: The CME Group is launching new 90 percent Lean Beef and 50 percent Lean Beef futures and options contracts in July. There are five key factors that must be present in physical markets and futures contract specifications for futures contracts to become successful. The two l...
What You Need to Know Today: The hot, dry weather forecast continues to drive strength in grain futures with corn and soybeans hitting another day of strong gains. Monday’s Crop Progress and Conditions data were in line with market expectations and showed relatively few concerns for the...
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.