Funds continue to add length to positions in CBOT markets, most notably in soyoil and wheat today. Spot soyoil futures hit an eight-year high on Wednesday while fund buying lifted wheat futures above key resistance levels. Kansas City wheat settled at new contract highs while Chicago wheat is edging closer to its contract high. Concerns about dry weather in southern Brazil and Argentina, combined with the delayed Brazilian soybean harvest and possible disease issues supported corn and soybean futures as well. Funds are thought to have bought 10,000 contracts of soybeans and 12,000 contracts of corn along with 7,000 contracts of wheat. Managed money also likely secured some 20,000 contracts of soyoil while remaining flat soymeal. ...
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.