Imperfect Petroleum Relationship The assertion has been that petroleum is a finite resource whereas agricultural commodity production can always increase to fill shortfalls. Yet petroleum has also been characterized as a bellwether for agriculture. For example, during the 1997-1998 Asian Financial crisis, petroleum prices fell around 60 percent. Asian markets had been a key area of growth for global agricultural trade and corn prices fell 40 percent while wheat went down 27 percent and soybeans fell 17 percent. However, agriculture has not always mimicked petroleum, at least not fully. Between late 1985 and mid-1986, the value of petroleum had dropped 60 percent. The wheat market fell 19 percent during that timeframe, but corn was o...
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.