The CBOT was broadly lower with corn, soybeans, and all three wheats trading into the red. The day had the feeling of a broad “risk off” day with general position liquidation. Economic data released today increased concerns about a global economic slowdown, causing stock prices to tumble. That weighed on the CBOT as well amid a general investor “flight to safety”. Overnight weather forecasts turned more favorable for the U.S. corn and soybean crops. Previous runs suggested above-average precipitation for the bulk of the Corn Belt, but that trend is now much drier in the 6-10 and 8-14-day forecasts. Moreover, temperatures, except for the Northern Rockies, will be at or slightly above normal. The net effect is t...
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.