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feed-grains soy-oilseeds wheat

Market Commentary

General Comments Corn got all dressed up today and had nowhere to go. The WASDE report was bullish in comparison to the average analysts' expectations. Prices did open 25 cents higher only to consistently sell-off into a negative 18-cent close. Profit-taking and/or outside market factors may have contributed to that sell-off, but those reasons are largely irrelevant. The most important outcome of today's negative price action is the reduced odds for a suspension of the Renewable Fuel Standard (RFS) mandate. Suspension of the mandate seems highly likely to return for serious consideration, but not until next spring when corn prices are completely out of hand.Many feed grain buyers were maintaining hand-to-mouth positions, perhaps with hop...

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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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