The much-anticipated August WASDE featured cuts to U.S. corn and soybean yields and production with smaller global ending stocks for corn, soybeans, and wheat. The report’s change from the prior month initially looked bullish, but the trade had largely expected these changes and USDA’s numbers fell well within the range of pre-report expectations. In response, the market adopted a “no news is bearish news” approach and corn, wheat, and soybeans all sold off following the report. Funds were net sellers for the day, especially in corn and wheat where larger U.S. ending stocks are pressuring the price outlook. One key to interpreting today’s futures price action in light of the WASDE is to remember that corn, soyb...
What You Need to Know Today: There has already been a strong run of flash soybean sales announcements in recent weeks, but more than 1.4 MMT reported this morning is an exceptionally large single-day total with major implications for the market. If the sales to China and unknown destinations w...
On Friday, at 6:57 AM, President Donald Trump announced, via a social media post, a 90-day window during which up to 300,000 metric tons of product for ground beef could be imported outside of tariff-rate quotas—a move aimed at bringing down costs for American consumers. This is the secon...
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.