The extent to which hope for a solution to the U.S.-China trade dispute has dominated the soybean market has been previously discussed here. Soybean futures prices gave up something like $2.00/bushel when China quickly expanded the conflict by setting a 25 percent tariff on U.S. soybean imports. That action then forced Chinese buyers to seek Brazilian soybeans, which pushed those prices to a huge premium of about 25 percent over U.S. stocks at one point, enough to cover the cost of the tariff. However, the Chinese government let it be known that it did not favor imports of U.S. soybeans even if it were economic to do so. Thus, the situation effectively became an embargo. With soybean prices having cratered as a result of political decision...
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.