GOOD MORNING, The surprising strength of the rallies this week caught bears off guard, creating a short-covering rally which found little selling pressure. Corn was the strongest market but makes sense since it was the most beaten-up heading into the Sep. report. Basis remains strong. The hurricane, which triggered fund selling and liquidation, perhaps got the market to a point where it: 1) had to come up for air and 2) created an undervalued condition for corn, in particular, given the amount of fund selling into the Sep. 10 data. Near the close, wheat and soyoil encountered losses that took the other markets off their highs. As technicals took over Wednesday, the market was able to shru...
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.