CBTO trade on Monday was all about positioning for Wednesday’s WASDE report from USDA. Traders took out some of the weather premium that was bid into soybean and corn futures while they unwound long soy/corn versus wheat spreads. Position squaring and spread trade was dominant today with the index fund rebalancing effort adding volume to the day’s trade. The Export Inspections report was neutral soybeans while leaning bearish corn and soybeans. Corn exports were once again below their weekly target, though USDA revised last week’s exports higher by 6 Mbu. Similarly, wheat inspections were less than half their target volume and in-line with last week’s shipments. Soybeans were surprisingly bullish with China an...
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.