Regional Updates MIDDLE EAST/MEDITERRANEAN COMMENTS Egypt is reportedly looking at the possibility of establishing a wheat hedging program to better protect against the volatility of international wheat prices. The finance ministry is said to be taking a very close look at how such a system could work. The difficulty for Egypt is that margin calls on futures may prove to be an insurmountable complication. Most grain importers there do not currently hedge their needs directly in futures, although they may do so with their suppliers, as hedging is considered to be more of a risk than an advantage. Morocco has now decided to eliminate the import duty altogether on soft wheat during November-December 2018. It will then be reinstated at the 3...
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.