At one time, Chicago wheat futures (now the CME wheat contracts) provided a price discovery function for most world buyers and sellers. However, the CME SRW wheat futures have never been a logical hedge for the great majority of world wheat trade.The business of buying and selling grains, oilseeds and oilseed products around the world is fraught with risks for producers, exporters, importers and end users alike. Among them are: changing ocean freight costs as that market responds to the pressures of supply and demand; fluctuating exchange rates when grain and oilseeds are purchased in one currency and then sold in another; the changing value of money as expressed by fluctuating interest rates; and of course the possibility that the quality...
What You Need to Know Today: Chinese purchases of U.S. soybeans continued to accelerate, with USDA reporting another 558 KMT sold to China and 236 KMT to unknown destinations. Combined with sales announced Wednesday and Thursday, the latest purchases bring the three-day total to approximately...
As fall begins, wild migratory birds are starting their seasonal migration. That has the industry and government officials worried about the potential spread, again, of highly pathogenic avian influenza (HPAI). Some members of Congress have called for the United States to be prepared for a pote...
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.