World Perspectives
soy-oilseeds

Fear and Panic: Overreaction in the Soybean Pits

Early this morning, China announced U.S. soybean imports would be subjected to a 25 percent tariff. The move comes in response to proposed U.S. tariffs on imports of Chinese products, and it seemingly confirms a trade war. However, neither side has set dates for when the tariffs will become effective, offering some hope that mutually beneficial solutions can be found. Soybean futures reacted to this morning’s news with panic as trading algorithms “read” the headline and did what humans programed them to: sell, sell, sell.

To be blunt, the market overreacted. As WPI has pointed out before, China places itself in a poor position by restricting U.S. soybean imports, effectively taxing its own consumers. There are si...

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Market Commentary: China Headlines and Technical Buying Lift CBOT

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Summary of Futures

Mar 26 Corn closed at $4.3125/bushel, up $0.0375 from yesterday's close.  Mar 26 Wheat closed at $5.525/bushel, up $0.1525 from yesterday's close.  Mar 26 Soybeans closed at $11.3725/bushel, up $0.1325 from yesterday's close.  Mar 26 Soymeal closed at $307.9/short ton, up $4.9 fr...

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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.

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