The CBOT started the week on a high noted in early trade, but the soy complex quickly turned lower and pulled old crop corn futures lower too. Wheat was the stalwart for the day with both the KC and Chicago markets posting 30-35-cent gains. Funds were net buyers and index/investment funds continue to add exposure to the market. The Goldman roll finished its third day on Monday and will wrap up this week. World grain fundamentals remain broadly bullish and the continuing influx of investment indicates the CBOT will keep grinding higher. La Nina is strengthening again with the latest models indicating a 53-60 percent chance that the weather trend continues into July and August. That implies hot, dry conditions over the western U.S., in...
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.