It is the last full trading day before the sometimes-eventful June planting and quarterly stocks report. Based on the average trade estimates of acreage and stocks, tomorrow’s reports are viewed as a quiet affair. Corn and soybean acres are expected to be slightly higher than the March numbers but not by enough to move markets. Stocks numbers are expected to be large, which tends to rein in market reactions. We should mention that when the market expects no surprises from an important USDA report, price reactions to the unexpected can be severe. However, we do not expect that tomorrow. In overnight trade, grain and soy prices did not venture far from Wednesday’s closes. The bias was very mildly toward the downside. Prices were...
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.