The market bounced off new contract lows from earlier this week and while it usually would buy on a rumor it took reports of Chinese buying interest with a wee bit of caution. JC Intelligence believes China will buy 10 MMT of soybeans and 20 MMT of corn from the U.S. as part of the Phase One trade deal and to refill strategic stocks. The soybean number is considerable, but the corn number would be historic. Still, it is not enough to offset the plunge in corn demand from ethanol makers. Feed demand in China is strong, which is notable considering continued problems in the nation’s pig herds. There is also a rumor that China wants to buy U.S. beef, though getting it through a packing plant is an increasing problem. There are mor...
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.