World Perspectives
wheat

Three Wheat Peculiarity

The December SRW and HRW contracts closed lower today, while December HRS added value. These three wheat contracts often move in unison, but not always. And they have many other differences that define them. HRS is typically priced higher due to its greater protein content and thus demand, especially for use in high quality breads. The price of HRS is more strongly inversely correlated with supply than it is for HRW, and SRW shows the least correlation between supply and price. The latter may be influenced by the larger volume of speculative trading in SRW than the other two wheats.  Carryover through the years for the hard wheats (HRW and HRS) have been trending down but has been trending higher for SRW. Meanwhile, the long-term upwa...

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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.

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