One might ask why the big crop/big demand year of 2016/17 is much different from 2015/16 when there was an almost record U.S. soybean crop absorbed by then record demand. Some have characterized the current soybean market as an arm wrestling match between bulls and bears.USDA reported that the 2016/17 U.S. soybean harvest was 62 percent complete as of 16 October, which is virtually at the five-year average but behind last year’s pace. This month’s WASDE solidified expectations for a record yield and production exceeding 4.2 billion bushels. A U.S. soybean crop that large is impressive to say the least, but it is no more so than USDA’s forecast that total 2016/17 demand for U.S. soybeans will reach 4.1 billion bushels. Those two numbers rath...
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...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
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.