Speculative traders are much more at liberty to focus on the short-term than are hedgers of commodities, producers or end-users. That is because survival of a commodity-related enterprise depends upon harmonizing multiple successful tactics, rather than exclusively focusing upon a positive trade return. This fact exists because hedging is normally a stabilizing supplement, but not the primary revenue generator of the operation that deals with physical commodities. The ability to generate stable revenues is dependent upon implemented tactics – and implementation is normally dependent upon planning – and successful planning is dependent upon realistic "what if" analysis. Without such a process, management will be constantly reacting to unfo...
What You Need to Know Today: U.S. weather is getting more attention this week as conditions vary greatly across the western, central, and eastern corn belts, with the different regions battling dryness and too much rain simultaneously. The ProFarmer Crop Tour began today in Indiana and Nebrask...
Key Takeaways: Argentina is on pace for a record corn crop and record exports in the current marketing year, with abundant supplies likely to keep the country highly competitive in global export markets. Argentina’s record exportable surplus is allowing it to offer highly competitive pri...
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.