There were lots of large worries in the big picture but not so much in agriculture today as it carried on in a mostly bullish affair. The macro markets are supposedly concerned about the rising cases of COVID-19, the lack of an economic stimulus package and perhaps threats from Beijing. The agricultural commodity markets remained focused on supply and demand, the latter of which is well evidenced. In fact, bullishness in commodities attracts cash seeking great yield and thus open interest is pressured upward. Middle income countries are purchasing to stockpile in case supply chains break again under the coronavirus. It is reported that Chinese consumer purchasing during Golden Week was stronger than expected. China says its corn production...
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.