The market opened lower across the board as called with coronavirus on the brain. It has now spread to 30 countries but the WHO has yet to call it a pandemic. The market is assuming the worst, with some even saying there will be a recession. Money reacts to fear and volatility, with funds in large short positions or just getting out and reducing the amount of open interest. Walking the market down takes time due to breaks on sell-stops. The question is when does it become oversold? And if so, won’t it be explosive if the disease peaks and China begins buying? Stepping back and considering the whole purpose of the futures market, there is some irony in the data. At the same time that climate change, pandemics, technologic...
Key Takeaways: Export sales measure new commitments for future delivery, while export inspections provide a timelier gauge of grain that is physically moving through the export system. Sales and inspections often diverge from week to week because they measure different stages of the export pro...
Mediterranean/Middle East/North Africa/Africa – MEA Region Sri Lanka poultry producer associations say that the delay in approving maize imports is pushing prices for poultry meat and eggs higher. Producers have had to use rice for feed rather than maize due to a lack of supply, and many...
What You Need to Know Today: The Brazilian real surged to start the week after a surprise election result in which right-wing Flavio Bolsonaro won the first round of the election. The swing in the U.S. dollar/Brazilian real (USD/BRL) exchange rate caused soybeans to jump sharply higher in earl...
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.