The extremely slow pace of corn planting in the U.S. was previously discussed in the 13 May analysis (click here). The eastern Corn Belt is especially affected, and the soybean planting pace is equally slow. The markets hadn’t responded to this problem up until last Monday’s crop progress report, but it certainly took notice the balance of this week. December corn futures gained more than 30 cents heading into today’s trading session. December Chicago wheat’s gains were even more impressive, gaining 40-50 cents. Funds have been building record-large short positions in corn and wheat for months without any meaningful risk. The setback in the U.S./China trade talks seemed to make them bulletproof. The problem, of cour...
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.