Today’s grain and soy futures markets were a sharp contrast to Monday’s with a substantially lower volume of trade. Interestingly, open interest (O/I) in corn jumped almost 40,000 contracts yesterday. Funds were heavy sellers, adding to their already very large short position. However, the big increase in O/I suggests that new long positions were being established, probably by end users who apparently saw yesterday’s break to near last month’s lows as an opportunity. O/I in soybeans also climbed nearly 14,000 contracts as funds added to their short position in that as well. Some of the increased O/I could also be the result of index fund rebalancing, during which some volume of wheat, corn and soybeans was purchased...
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.