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feed-grains soy-oilseeds wheat

Market Commentary

General Comments The December 2012 corn contract may be forming a double bottom at $7.39. If this contract closes out the week strong tomorrow, then a temporary bottom may be established. Prices could then look to define the upper end of a price range, perhaps $7.40-8.10, in which to spend the next few months.A stronger basis in the Gulf suggests that current U.S. corn prices are attracting the attention of the export market. This season farmers have been increasingly concerned about aflatoxin, so it is probably incorrect to attribute that strong basis to lack of farmer selling. Eventually, higher basis may be necessary to pry sufficient amounts of corn away from farmers, but that probably is not yet the situation because there is still...

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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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