The CBOT fell sharply (except for soyoil, which seems to be living in its own little world) with funds quickly and aggressively liquidating long positions, especially in corn. Funds selling pushed markets below technical support levels, which triggered sell-stops and accelerated the CBOT’s decline. Corn futures hit their limit-low this afternoon but settled a few cents above that level. Soybeans tried to rally alongside soyoil but the corn weakness pushed that market off its highs and into a weaker close. Wheat futures seem modestly concerned about poor conditions ratings reflected in USDA’s report yesterday but could not withstand spillover selling from the corn market. Corn/wheat spreads suggest wheat is trying to remain compe...
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.