The headline figures from the September WASDE were the U.S. corn and soybean yield and production figures, both of which were in line with expectations, and thus created the market’s ho-hum reaction. Somewhat lost in the day’s focus on primary crops, however, was the USDA’s updates for the vegoil markets, which will have profound implications for oilseed values and trade this year. Perhaps the headline figure for soyoil was that the USDA forecast world soyoil stocks to fall 1.8 percent versus their August forecast and stocks will be down 2.5 percent year-over-year. The reduction in global stocks comes despite predicted large increases in stocks for the top five largest producers (China, the U.S., Argentina, Brazil, a...
What You Need to Know Today: The hot, dry weather forecast continues to drive strength in grain futures with corn and soybeans hitting another day of strong gains. Monday’s Crop Progress and Conditions data were in line with market expectations and showed relatively few concerns for the...
Yesterday we wrote about the Q1 GDP numbers and the June employment reports in an article entitled Real GDP for Q1 Relying on AI Buildout, Held Back by Consumer Spending. That article mentioned that consumer spending had become a drag on GDP. Nonetheless, real GDP in Q1 was revised upward to 2...
Key Takeaways: The Middle East and North Africa's arid climate and limited water resources have created a structural dependence on imported wheat. Government wheat tenders in major importing countries serve as important benchmarks for global trade, providing insight into exporter competitivene...
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.