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feed-grains soy-oilseeds wheat

Market Commentary

General Comments Basically, CME grain and soy futures trade today was a tale of two markets. USDA's modest cuts in 2012 production prospects and a 2012/13 corn supply/demand balance that actually increased total supplies and end stocks disappointed the corn market, which promptly sold off under heavy fund liquidation. Moreover, some traders were caught long corn/short soybeans on a spread basis which, based on the USDA report, was exactly the wrong way to be, so they hastened to unwind the spreads.On the other hand, USDA's cuts in the soybean yield and production exceeded market expectations. Additionally, USDA raised exports and crush for 2011/12, thus lowering the carry in for 2012/13. USDA left ending 2012/13 soybean stocks unchanged,...

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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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