Some analysts have long argued that Chinese policymakers made a trade-off decision by favoring domestic corn production and soybean imports. Basically, the nation can produce anything it wants, but it cannot produce everything. As the producer of 22 percent of all global corn and the repository for 61 percent of the world’s carryover stocks, China has been all in on corn. USDA forecasts that the nation’s corn imports this year will match last year’s record level but China-based analysis firm JCI now says they will be 128 percent larger. If JCI’s forecast of 16 MMT of corn imports comes to fruition, China will consume roughly 9 percent of all traded corn. JCI bases its forecast on the adverse impact of multiple typho...
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...
Key Market Insights Macro markets delivered a full whipsaw today. Early in the session, crude oil had rallied back above $100/barrel as traders priced renewed concern over the U.S.-Iran standoff and potential supply risk through the Strait of Hormuz. That strength helped pull grains off their o...
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.