CBOT markets featured much of the same position-evening, range-bound pattern they have for most of this week. Wheat futures bounced off technical support and moved higher in what was the most interesting development for the day. There is little interest in adding to/subtracting from positions ahead of the January WASDE, and funds are thought to be net short 8-10,000 contracts of soybeans, short 20,000 contracts of soymeal, and 85-95,000 contracts of corn. The fund long position in soyoil is near 100,000 contracts, making that market vulnerable to corrections, while managed money also holds 20,000 contracts of a long wheat position (that is potentially growing). China noted this morning that it would be suspending its national ethanol...
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.