CBOT futures were muted as traders are largely positioning for the September WASDE report on Friday. Corn showed perhaps the greatest weakness, pushing to new lows while the wheat market posted larger losses but stuck to recent trading ranges. The soy complex was volatile with spread trade and choppy action in soyoil driving the market. Cattle futures were perhaps the most interesting markets as the two-week selloff continued and even accelerated today in heavy volume with funds turning into net shorts. The Biden administration is announcing a plan to lower meat prices that it thinks are caused by concentration in the packing industry. The administration will take $1.4 billion in COVID-19 relief money and funnel it towards small meat...
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.