World Perspectives
livestock

Dairy Outlook

With drought, a late July heat wave, and escalation of the war Ukraine, risk premiums are being priced into the markets – and dairy was no exception. Yesterday the Class III Milk futures traded limit up on August, September, October, and November. The Class IV followed in the draft of the Class II jetstream. Today, those contracts traded on expanded limits given yesterday’s session, but the July Class III contract was up a penny and August and September gave back 9 and 49 cents respectively.  Spot markets have also rallied, for block and barrel cheese, butter, whey, and powder.  Last week, ice cream makers were pulling cream away from butter makers and heat in the central and western parts of the country has been impa...

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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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