Sugar prices in Maharashtra may be dropping as new stocks become available at the market, but they could rise over the next few months because of one anticipated scarcity. There is also a fear that this could be the earliest season for some mills, and the current import duty may need to be reconsidered. Inflation Lowered by Demonetization As a follow-up to last week’s report regarding demonetizaton slowing consumption, the government of India (GOI) has been able to achieve at least one target - lower inflation. Wholesale Price Index (WPI)-based inflation is down to a two-year low of 3.15 percent for November 2016 versus 3.39 percent for the previous month. It had been 3.72 percent in July 2016 (one month post-monsoon) and rose to 3.85 per...
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.