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feed-grains soy-oilseeds wheat

Market Commentary

General Comments The recent decline in trade volume for the the December 2012 corn contract is probably indicative of traders' waning interest in expanding positions prior to USDA's 10 August WASDE. Large traders often recognize that it can be harder to get out of a large position when volume declines. So, if there is going to be profit taking, then it is likely to take place by the close next Wednesday. If so, trading action could become increasingly volatile for the next week as market participants square up their positions.Several days of selling could cause the recent price action in the December contract to look like the potential formation of a head-and-shoulders pattern. However, bullish traders with established long positions are...

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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.

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