Corn and soybeans staged reversals to yesterday’s WASDE-driven declines while wheat continued tacking higher on the report’s forecasted decline in global supplies. The price gains in feed supplies may have spooked livestock as those contracts traded lower. Also lurking in the background were questions about Black Sea grain impacted by the war. Even as USDA increased its forecast for Ukrainian wheat exports, Russia has damaged that nation’s Black Sea export facilities at the same time EU nations to the west have pledged not to allow passage in their direction. Meanwhile, Ukraine lobbed several missiles at Russia’s Sevastapol shipping port and pledged to send more of the same. Outside markets may also hav...
What You Need to Know Today: CBOT markets pared Monday’s sharp losses as traders booked short profits and adjusted positions ahead of the Grain Stocks report that USDA will release Wednesday afternoon. The 7-day QPF forecast from NOAA now shows heavy rain across the central and western C...
There was encouraging news over the weekend: the White House may reject the misguided idea on Capitol Hill to ban U.S. diesel exports. What WPI has noted previously was perhaps best put by a Department of Energy report of 2022, under the Biden administration: Petroleum liquids markets are globa...
Key Takeaways: Comparative advantage encourages countries to specialize in goods they can produce at a lower opportunity cost and rely on trade for others. Differences in climate, land, infrastructure, and technology help determine where agricultural commodities can be produced most efficientl...
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.