For the second day of this holiday-shortened week, the overnight session produced minor losses for grain and the soy complex amid extremely light trading volume. However, that did not adequately prepare traders for what happened during the day session. Wheat and corn markets were pummeled by mostly noncommercial selling that drove KC and Chicago wheat futures as well as soybeans futures to double-digit losses. Corn futures prices were not quite as weak, but that is faint praise. Funds showed no fear of selling across the board even though they already collectively hold very large short positions in corn, soybeans and wheat. Chicago wheat was the weakest item with the May contract closing down 14.5 cents at $4.45 after being down more than...
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.