CBOT markets opened sharply lower on Tuesday as profit taking and pre-holiday position evening/liquidation pressured markets. Rumors of China cancelling some of its soybean bookings from the U.S. further pressured values, as did thoughts that some U.S. February shipments could be switched to Brazil. Wheat was the upside leader as world demand is looking firmer heading into the New Year. Afternoon confirmation that La Nina conditions in the Pacific Ocean are strengthening helped pull soybeans and corn off the day’s lows and to nearly unchanged or slightly higher closes. The latest ENSO forecast confirmed that La Nina conditions are present and issued a 95 percent chance that the weather event will continue into Q1 2021. The fore...
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.