The current soybean market is a far cry from what most analysts expected, and we have once again been reminded that it is wise to be wary when there is a near unanimous analytical consensus on long-term market prospects.One reason why commodity markets are so fascinating and even addictive is that the factors that combine to establish values seldom, if ever, go as planned or predicted. This is particularly true for agricultural commodities. Analysts can carefully study production economics and forecast the production volume of various crops as well as the resulting total supply of each crop that will be available. They can consider the economic factors that determine demand with equal care and forecast how much of each crop will be needed...
What You Need to Know Today: U.S. weather is getting more attention this week as conditions vary greatly across the western, central, and eastern corn belts, with the different regions battling dryness and too much rain simultaneously. The ProFarmer Crop Tour began today in Indiana and Nebrask...
Key Takeaways: Argentina is on pace for a record corn crop and record exports in the current marketing year, with abundant supplies likely to keep the country highly competitive in global export markets. Argentina’s record exportable surplus is allowing it to offer highly competitive pri...
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.