USDA/NASS cut the U.S. corn and yield estimates by 1.8 bushel/acre (BPA) and 1.0 BPA, respectively. Those reductions were well below the average minor changes expected by the trade. This resulted in production estimates that were also well below the average guesses reported by wire services. Clearly, some negative impact of adverse weather on mature crops prior to harvest was accounted for in those estimates. After making adjustments to corn demand, USDA forecast that ending 2018/19 U.S. stocks would fall to 1.736 billion bushels, down 77 million from October and over 400 million bushels lower than ending 2017/18 stocks. The smaller estimated soybean production was more than covered by a reduction of 160 million bushels in total demand (low...
Markets are caught between reasons to keep selling and reasons to take another look. Fund liquidation and renewed peace talks are pressuring grains, while fresh export business and some diesel relief offer encouragement. Corn recovered nearly 10 cents from its low to finish higher, while soybea...
Key Takeaways: President Trump announced $8 billion in additional agricultural assistance through the Harvest Fuel Relief Program, as USDA projects farm fuel and oil expenses will increase 28.8 percent in 2026. The package follows $12 billion in earlier relief, while government farm payments w...
Key Takeaways: A student group from the University of Chicago is protesting to bring back onion futures trading. Trading in onion futures was banned in 1958 following a spectacular bout of market manipulation that resulted in a corner of the physical market. The ban on onion futures led t...
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.