The Market If traders were nervous headed into the three-day Memorial Day weekend, concerns appeared to be to the upside. The lack of demand had soybean prices falling but this week saw a turnaround that was untimely for speculators. They had spent last week creating a net short position in soybeans of 4,688 contracts. (Note that on a disaggregated basis, managed money still had a tiny net long in soybeans of 710 contracts.) This week’s rally forced a lot of short-covering. For the week, July soybeans added 2.3 percent, July soyoil was up 3.2 percent, and July soymeal lost 1.6 percent in value. It is important to note that the largest increase was for old crop soybeans where supplies are tight. November soybeans added 17.25 ce...
The U.S.-Mexico-Canada Agreement (USMCA) enters its mandated six-year review on 1 July. The original intent of the review is outlined in Article 34.7, which obligates members to: Provide recommendations and decide on appropriate actions. Extend the USMCA for another 16 years and meet aga...
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.