The CBOT opened on a higher note with soybeans finding solid support on technical buying as well as rumors of Chinese purchases of U.S. product. Soymeal and soyoil opened higher as well but worked their way lower through the day, posting losses to start the week. Grains opened firmer but could not find follow-through buying and slowly drifted lower through the session with funds returning as net sellers. The big news of the day was that China booked 4-6 cargoes (240,000+ MT) of soybeans for shipment in July. FOB NOLA offers are increasingly competitive with Brazilian offers as the harvest in South America dwindles and prices firm. WPI’s research suggests FOB NOLA offers have a 10-16 cent/bushel advantage versus FOB Paranagua, Brazil...
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.