World Perspectives
feed-grains soy-oilseeds wheat

What Crop to Grow?

Farmers mostly want to grow what is easy and profitable. Excluding government payments, all the major crops have turned negative for U.S. farmers in terms of net value of production after expenses (see graph below). Productivity works to drive down the gross value of crops, but growing what the market demands is also important.

Understanding what the world wants and is willing to compensate can be challenging to calculate. Following are key results for six major global crops analyzed during 2011-2020:

Soybeans have had the largest increase in use (thank you, China), and the biggest boost in yield gains but also the second-greatest increase in ending stocks. Corn has also had impressive increases in use as it compliments soymeal in th...

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feed-grains soy-oilseeds wheat

Summary of Futures

Mar 26 Corn closed at $4.3125/bushel, up $0.0375 from yesterday's close.  Mar 26 Wheat closed at $5.525/bushel, up $0.1525 from yesterday's close.  Mar 26 Soybeans closed at $11.3725/bushel, up $0.1325 from yesterday's close.  Mar 26 Soymeal closed at $307.9/short ton, up $4.9 fr...

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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.

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