While it is difficult to assess the impact of weather on Brazil's overall crop production at this point in time, it is safe to say that it will be difficult to reach the current soybean production estimate there and that corn's is likely too high as well.We’ve commented recently about the apparent disconnect between the mainstream weather reports from Brazil compared to actual reports received from clients actually farming there. For most of the past two months, the daily weather summaries have simply said “weather in Brazil is good for crop development.” Meanwhile, farmers in central and northeast Brazil have been talking about extreme drought coupled with very hot temperatures. Another conversation with a client in Brazil earlier th...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
What You Need to Know Today: Wholesale inflation was flat in July, with the Producer Price Index (PPI) unchanged versus expectations for a 0.2 percent increase. Core PPI rose 0.2 percent, also below expectations. The softer inflation data has reduced the odds of a September interest rate incre...
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.