It was just last Monday that the August/November soybean futures spread set its high for the year at $2.32. Basis levels for both soybeans and soymeal were still screaming higher and it seemed a certainty that the August contracts would see a delivery squeeze. It all started to come apart in a very big way Tuesday and eventually that spread collapsed all the way back to $1.25. Basis collapsed as well. The same thing happened to the September/December corn spread. That basis also collapsed and producers tell us that they sold corn for $7.30 Monday afternoon with bids yesterday at $5.30.It is never pretty when the market decides it's time to collapse old crop/new crop inverses. The experience is painful if you held that last old crop bushel...
What You Need to Know Today: Commodities were mostly lower across the board today after yesterday’s Federal Reserve meeting hinted at a potential interest rate hike later in 2026. The dollar index reached its highest level in over a year, and a strong dollar makes U.S. agricultural expor...
Key Market Insights Geopolitical Limbo: Geopolitical risk remained a key driver across global commodity markets today. President Trump stated that the Iran memorandum of understanding is not yet final and warned that military action could resume if negotiations fail. Both sides continue w...
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.