World Perspectives

Fed’s Next Move

The Federal Reserve’s Federal Open Market Committee (FOMC) will be meeting again in June, and the markets are expecting a federal fund rate hike to 2 percent. The only real surprise would be if the increase was more than 25 basis points. When the rate was raised in March to the current 1.75 percent, the Fed released its so-called dot-plot. This is a chart with dots that each represent a Fed member’s view on where the federal fund rate should be at the end of the year as well as the following one. The dot-plot showed a median of 2.9 percent by the end of 2019, which could be interpreted as three rate increases this year (March and then presumably two more in June and December), and two next year with 3.4 percent reached in 2020...

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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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