Wheat was the star of the CBOT as declining EU and Black Sea production estimates sparked short covering and risk-on trade. Yield prospects across Southern Russia have been disappointing, furthering the CBOT rally. Corn was eventually pulled higher by the wheat market while the soy complex remained on the defensive for most of the day. Funds continued to book profits in soybeans and soyoil, contributing to the market pressure. If not covering shorts or booking profits, most CBOT trade was focused on positioning for the upcoming July WASDE to be released on Friday. Brazil’s CONAB increased its estimate of the 2019/20 Brazilian soybean crop to 120.9 MMT, up from 120.4 MMT in June. USDA has maintained its forecast for the same cro...
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.