On Monday of this week, traders were met with limit-down losses in soybeans, plus double-digit losses in corn, soymeal, and wheat. For many, it didn’t feel good. The war in Iran presented surprises, including the postponement of a Trump-Xi meeting expected to sell some soybeans. Fundamentals often follow a calendar; geopolitics do not. The trade moved protectively ahead of this weekend, squaring positions today so as not to get burned on Monday. Yet, it wasn’t a rush, nor was it a fight. Volumes traded were the lowest in a month or more. It was pure pragmatism. Better to hedge against the unknown, take a little profit, and live to fight another day. It was a second week higher for soymeal, but a suck-wind one f...
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.