The market was called to open higher with traders adjusting positions ahead of next week’s Planting Intentions report. The CBOT opened mostly in-line with expectations but quickly turned mixed with profit taking in soymeal creating two-sided trade in soyoil. Spread trading was light and worked to move spread mostly in-line with last week’s closes in corn, soybeans, and HRW futures while the SRW wheat forward curve flattened and generally worked lower. Today’s trade featured funds selling 4,500 contracts of corn and 1,000-1,200 contracts of soybeans while remaining net wheat buyers, securing 4,000 contracts of Chicago wheat. Trading volume was light as fundamental news remains lacking ahead of the Planting Intentions report...
Key Takeaways: Dry bulk markets remain mixed with Capesize vessels seeing continued pressure from weaker demand while fixtures and rate strength gradually increases towards the smaller vessel classes. Tanker markets are pulling back from their recent highs as tonnage moves out of the Mid...
The Trump import plan for 300,000 MT of beef supplies used for ground beef, i.e., lean trim, from September through November has, according to Secretary Brooke Rollins, brought some relief to beef prices. The Executive Order states that the Secretary of Agriculture will analyze and review the m...
Key Takeaways: Texas illustrates the assumptions underlying the 2025 FMMO reform; Idaho exposes their limitations. The Southwest order blend (roughly 27 percent Class I, 32 percent Class III and 31 percent Class IV) exposes Texas producers to every lever USDA adjusted, with a near-neutral proj...
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.