CBOT markets opened on the defensive after tensions between the U.S. and Iran continued to rise over the weekend. Dow futures opened 150 points lower for Monday’s trading and CBOT markets followed a mild risk-off mentality early as well. By mid-day, however, a different tone developed in Chicago markets with the dominant theme being that of sell corn/buy soybeans. Spread trading was active as funds and traders position for the January WASDE that is coming on Friday. The theme of 2019 was bearish surprises for corn, and traders seem to be bracing for more of the same in the January report. By some estimates, corn yields below 164 BPA are needed to create a truly bullish scenario. That, however, seems highly unlikely given USDA’s...
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.