As WPI has written about several times recently, the beef industry is eagerly awaiting the January Cattle Inventory report from USDA to see whether producers are starting to expand the herd. This information will be valuable for gauging cattle supplies in 2025 and 2026 and will help set pricing expectations. The forward-looking eagerness is not isolated to the beef industry, however, as the dairy industry awaits the report for similar reasons. WPI recently conducted an econometric exercise to forecast the key figures in the 2025 January Cattle Inventory report and our forecasts surprisingly indicate a minimal increase in beef cow numbers and a small overall decline in cattle inventories. WPI’s approach was to model each of the relevant...
Key Market Insights Geopolitical Limbo: Geopolitical risk remained a key driver across global commodity markets today. President Trump stated that the Iran memorandum of understanding is not yet final and warned that military action could resume if negotiations fail. Both sides continue w...
Key Takeaways: Drought remains a major threat to global agricultural production, particularly in regions with limited rainfall and growing water scarcity. Commercially available drought-tolerant traits in corn, soybeans, and wheat have generally delivered modest yield improvements, limiting th...
Key Takeaways: Peace at last in the Persian Gulf? Over the weekend, the U.S. announced and Iranian officials confirmed a peace agreement, with formal ratification set for Geneva on 19 June. The announcement means the Strait of Hormuz is set to reopen fully and toll-free within 30 days.&n...
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.