Post-WASDE trading saw fund liquidation start in the overnight session and continue into the day session. Soybeans and corn saw the greatest pressure while wheat was lower on improved weather for the U.S. HRW-growing region. Soymeal continues to weaken while the soyoil market posted a fresh contract high. The markets now seem to be trying to forge trading ranges heading into the March Planting Intentions report while also flushing out weak longs. Funds are thought to have sold some 30,000 contracts of corn and 25,000 contracts of soybeans along with 10,000 contracts of wheat. Funds were modest net buyers of soyoil while selling some 8,000 soymeal contracts. End-user pricing interest was noted on the break. Outside markets were mostly...
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.