The concept of holding stocks of grain that can be used during times of need has a nice humanitarian ring to it. It only becomes a good deal less appealing when one begins to sort out the realities of what this actually involves.In yesterday’s (11 May) Ag Perspectives, Gary Blumenthal remarked about the WTO ministerial decision to craft a rule that would allow national governments to accumulate and hold stocks of grain for purposes of food security. He noted that some countries that export agricultural commodities were open to consideration of such a rule as long as the accumulated grain stocks did not contribute to exports. Those comments started us thinking about stockholding and food security, an old concept that re-emerges in different...
What You Need to Know Today: After a period of limited activity, USDA reported a sizeable 613 KMT in soybean export sales, including 330 KMT to China and 283 KMT to unknown destinations, potentially also China. The purchases represent a meaningful pickup in demand and bring China closer to ful...
Inflation is back in the driver’s seat, and agriculture is getting pulled in two directions. A stronger dollar is pressuring grains despite fresh Chinese buying, while renewed Middle East attacks lift crude oil. Higher energy prices can support commodities, but they also raise expenses an...
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.