Today's strong across-the-board rally by grain and soy futures is a throwback to the sort of price action seen during the bull market days of 2012/13. General Comments Following yesterday's big drop, U.S. and European equity markets stabilized with U.S. averages closing modestly higher. The Dow gained back about 72 points. The U.S. dollar index gained, while gold declined. As stability appeared to return, crude oil closed higher as did copper, ending a long streak of lower closes. The DJ-UBS Commodity Index closed higher. Its largest component, natural gas, soared again as more frigid weather is forecast for the eastern half of the U.S. for the next week.Shades of the late bull market! The overnight session had low volume and mixed prices...
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
Monday, 25 May is a U.S. holiday, and both the markets and our office will be closed. Please note that the next issue of Ag Perspectives will be published on Tuesday, 26 May. The WPI staff wishes everyone a safe and enjoyable holiday weekend...
USDA’s monthly cattle on feed report was released today. The total number of cattle on feed in feedlots with 1,000 head or more capacity amounted to 11.6 million head, 102 percent of last year. Source: USDA, WPI Placements were up, but part of that is attributable to persistent drought c...
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.