As expected on the day before major USDA reports, overnight trading volume in grain and soy futures was subdued. In price action, soybeans were 2-3 cents higher, wheat was 6-7 cents lower, and corn was near unchanged. This same price pattern was maintained through the first half of the day session. Then about mid-session, strong rumors that Sinograin and COFCO were buying U.S. soybeans began to circulate. Details are not firm, but cash traders estimate that the total to be at least 2.0 MMT, possibly up to 2.5 MMT, with shipment for July-October. These purchases would be against the last 10 MMT promised by Vice-Premier Liu a few weeks ago and add to the approximate 2 MMT bought previously. There are also reports that the two state-owned comp...
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.