This week, Federal Reserve Board Chairman Jerome Powell delivered the first of his twice-per-year reports to Congress in testimony before the House and Senate Banking Committees. The basic message was the economy is strong, but the current range of low interest rates may mean a loss of leverage from monetary policy as a tool should the economy go into recession. The U.S. economy is now in its 11th year of expansion since the 2008/2009 recession consistently defying predictions of its imminent demise that have been a staple of cable TV commentary for the past 10 years. Recall the double dip recession predictions in 2011/12 and the inverted yield curve anxiety in 2019? Nonetheless, from a monetary policy standpoint, there is one major diffe...
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.