The CBOT finished on a high note heading into the February WASDE – a report that could be a turning point for the 2020/21 crop year. Corn and soyoil futures posted fresh contract highs (alongside live cattle and lean hogs) while the corn rally pulled wheat and soybeans higher as well. KC wheat futures posted a technically bullish day on heavy trading volume as cold weather in the U.S. is causing production risk concerns. The Goldman roll is ongoing as funds roll March contracts into May futures, which is helping inflate trading volumes and influence spreads. Funds are thought to have bought some 12,000 contracts of corn on Monday, along with 8,000 contracts of wheat and 10,000 contracts of soybeans. As noted on Friday, most ana...
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.