The lesson from yesterday is one that keeps being repeated, which is that USDA reports can be very humbling. Most were left scratching their heads in disbelief as the estimates had been expected to reflect some of the signals regarding corn and soybean yields.The lesson from yesterday is one that keeps being repeated, which is that USDA reports can be very humbling. The trade was universally expecting modest, friendly estimates of corn and soybean production and corresponding reductions in ending supplies. Instead, the exact opposite happened with corn and soybean yields both exceeding even the most optimistic of trade guesses, and markets got pummeled. That left most people scratching their heads in disbelief as the estimates had been expe...
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.