Recent declines in CBOT futures prices extend out through 2015 and are making South American producers nervous about the future margins that they can expect to receive. Production Cost Concerns Increasing in South America Recent declines in CBOT futures prices extend out through 2015 and are making South American producers nervous about the future margins that they can expect to receive. When margins are thin, even a small weather-related issue can cause positive margins to become negative. For example, consider how heavy rains are creating problems for Paraguayan farmers. Losses in the country's corn crop are estimated at 10 percent, or approximately 600,000 hectares. The combination of such a decline in production, transportation delays...
What You Need to Know Today: Chinese purchases of U.S. soybeans continued to accelerate, with USDA reporting another 558 KMT sold to China and 236 KMT to unknown destinations. Combined with sales announced Wednesday and Thursday, the latest purchases bring the three-day total to approximately...
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.