Traders got a better handle on the U.S.-China trade deal over the weekend and that put a bid under the CBOT on Sunday night’s open. The markets traded higher through the overnight session with corn ending nearly 6 cents higher, soybeans up 9 cents, and wheat 6-9 cents higher. Quite an impressive move for the overnight session, especially compared to recent history! The day session saw markets open higher and rally from there. The grains/oilseeds complex finished nearly universally higher while livestock markets struggled. Supplementing the bullishness from a phase one U.S.-China trade deal is the news that Argentina will increase its export taxes, thereby making U.S. corn/soybeans more competitive on the world market. The expor...
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.