Commodity prices are notoriously cyclical, and those who follow grain and oilseed markets may not fully appreciate the broader rally they had in 2016. Now there is of course considerable chatter and speculation about what 2017 may hold for commodity values.Commodity prices are notoriously cyclical. As measured by broad-based commodity price indices, they have suffered in a bear cycle that began in 2010. Somewhat to the surprise of those who had become accustomed to that environment, however, the bearish cycle apparently came to an end in 2016 when those commodity indices seemed to bottom and then begin to move higher. The result was that all major broad-based commodity indices posted yearly gains in 2016. This reversal was led most visibly...
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.