Given the market volatility that often follows the Prospective Plantings report, several options strategies exist to profit from extreme market movements. Based on current prices, WPI sees potentially profitable opportunities in November soybean options.Dramatic market volatility often follows USDA’s Prospective Plantings and Grains Stocks reports, both issued at the end of March each year. The reports bring significant clarity to the year’s supply and demand situation, which is often quite different than traders’ a priori expectations. Given these reports’ inherent unique volatility, several options trading strategies exist to help manage risk or capture profit.Over the past 25 years, the new crop corn futures price has moved an average 9...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
What You Need to Know Today: Wholesale inflation was flat in July, with the Producer Price Index (PPI) unchanged versus expectations for a 0.2 percent increase. Core PPI rose 0.2 percent, also below expectations. The softer inflation data has reduced the odds of a September interest rate incre...
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.