WASDE projections of record-large world production in 2016/17 still leading to an 8 MMT reduction in ending soybean supplies painted a tempting picture for erstwhile soybean bulls.Even as the spot soybean future price has approached $11, soybean futures longs have not backed away from what has become a major bull market run. If anything, the two-month bullish surge of the soymeal futures market has been even more impressive than that of the soybean market, but there are signs that nervous noncommercial meal longs have begun to back away.From a fundamental perspective, the catalysts supporting the bullish soybean market have been the May WASDE that lowered estimated world soybean production and higher estimated U.S. and world soybean demand...
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.