The CBOT rallied sharply on Wednesday with fund managers following through on yesterday’s Turnaround Tuesday and signs of U.S. inflation. More specifically relevant to ag commodities, however, the Brazilian weather forecast continues to show concerning dryness for the south of the country while Mato Grosso and central Brazil will see slightly drier weather conditions. The Brazilian safrinha corn crop remains under duress, and the CBOT is responding by bidding in some yield risk. Similarly, U.S. weather patterns are concerning for the planting effort in the near-term while the long-term outlook remains dry and less than ideal for wheat. Funds were motivated buyers on this combination of factors and technical buying/buy-stops wer...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
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.