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Global Climate Change & Agriculture: How AiQ Can Help To Navigate The Future 

Global Climate Change & Agriculture: Navigating the Future with AiQ

Climate change is reshaping agriculture with rising temperatures, shifting rainfall patterns, and extreme weather. Farmers face challenges like water scarcity, unpredictable rainfall, and pest outbreaks, making accurate forecasting essential. Corn yields in the U.S. illustrate these impacts, with recent years showing wide variations due to weather shifts.

Enter AiQ, an AI-powered tool designed for agriculture. By combining weather, crop, and satellite data, AiQ offers tailored insights and real-time updates to help farmers adapt and thrive. With tools like ANDY, a purpose-built LLM for agriculture, AiQ delivers reliable, ad-free forecasts and actionable data, empowering users to make informed decisions in a changing climate.

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2025 Weather Risks Jump for Brazil & Argentina

🌍 Argentina & Brazil Weather Update (Jan 5, 2025): Expanding dryness in Argentina's key production zones (Pampas/Nucleo Zone: Cordoba, Santa Fe, Western Entre Rios, Northern Buenos Aires) is raising concerns, with AiQ cutting soybean estimates from 55.8M to 52M tons and corn to 50M tons.

Meanwhile, drought risks in southern Brazil (Rio Grande do Sul to Paraná) are mirroring Argentina’s challenges, threatening 15-25% of high-yield corn and soybean production. RGDS model estimates have dropped significantly, with some projections falling from 21M tons to as low as 15M. Eastern Paraguay is also struggling with limited rain since early December.

📊 Stay tuned for weekly updates from AiQ and daily model insights with ANDY, AiQ’s LLM, for the latest risk assessments! 🌽☀️

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Quiet Weather Part 2: Don’t Get “Wheated”

Quiet weather markets tend to be bearish, as sustaining a bull market without ongoing weather issues is challenging. In the absence of significant weather developments, analysts often resort to sensationalism, with wheat markets being a prime target. As AiQ aptly notes, social media does not start bull markets—weather does. Patient buyers have been rewarded; the rest have gotten “wheated.”

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Quiet Weather Part 1: Brazil Soybeans on Pace to be a Monster

How big can Brazil’s soybean crop get? Since early November, AiQ’s consistent message has highlighted the absence of significant weather threats, with South America’s 2024/25 campaign off to a record start. Brazil’s production is projected to increase by 6 million tonnes to178.25 M, with yield potential exceeding market expectations. While recent forecasts show a drying trend, there are no alarming temperature concerns. A quiet start to 2025 will signal big harvests ahead for Brazil’s growers.

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The Real South American Weather Market Begins Now. AiQ’s Updated Production.

The South American weather market kicks off in mid-December, and with it, AIQ’s first in-season update. Current trends suggest a more bearish outlook for soybeans compared to corn. If favorable weather conditions persist, global stockpiles could increase by 15 million tonnes or more. AiQ's Machine Learning models will provide increasingly precise production forecasts as the season progresses. For now, Argentina remains the key region to watch, given the latest weather forecasts and trend toward a drier GFS.

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Narrow Price Outlook Could Catch Buyers Off Guard, AiQ Cautions

Falling prices, policy uncertainty, and abundant U.S. crops have led many buyers to adopt a hand-to-mouth strategy, purchasing only what’s immediately needed and minimizing inventory. This approach, which began after the Ukraine invasion, has been advantageous as prices for key commodities like wheat, corn, and vegetable oils have dropped by half, driving global inflation down. Despite these declines, buyers continue to expect even lower prices, staying bearish or complacent. However, AiQ warns that risks are quickly shifting, as seen in recent changes in the sugar market, suggesting more volatility ahead.

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Nuclear Fallout: The Looming Threat to Global Food Security

If a nuclear detonates in Ukraine, Russia, or the surrounding area, how will the world respond? What will it mean to agriculture markets? Eastern Europe and the Black Sea have become a vital breadbasket to the world.

This may be the single greatest outlier risk for traders, buyers, and governments. Chernobyl's meltdown had massive implications, but this time would be very different. We explore various scenarios and why this "unknown unknown" tail risk needs to be on your radar.

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Buy Gold: Traders Bet on New Records. Social Media Experts Lying in Wait 

Traders are making large options bets that gold will go much higher quickly. There are many fundamental arguments in support: deficit spending, geopolitical instability, dollar debasement, and rising protectionism. Central banks cutting interest rates were the latest catalyst to propel the shiny metal to new record highs.

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Soy, Corn, & Timing: 2024/25 “Way Too Early” S. Am Outlook

AiQ provides its "way too early" South American production outlook.

Soybean production is forecast up 4%, while corn is down 11%. Betting against the Brazilian farmer has been a losing bet.

Argentina will be the bigger wild card, but all the focus will be on the transition from the dry season to the wet season in Brazil. It's all about timing.

Brazil's ongoing drought and long term precipitation trends are concerning. Don't make the same mistake as a year ago chasing social media headlines.

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AiQ Corn (Final) and Soybean Yields Prior to the September USDA Update

AiQ presents its final corn and updated soybean yields prior to the September USDA update. AiQ's modeling predicts corn at 183.3 and soybeans at 52.6. Here are some of the questions AiQ addresses.

Can Illinois, Iowa, and Indiana meet the USDA's August forecast? Was the finishing weather beneficial for soybean pod-filling? Was the eastern corn belt weather as bad as initially thought?

Traders and analysts will be watching closely before all attention turns to South American weather.

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Media Falls for China Won’t Buy Grain… Again (AiQ Opinion)

The article argues that Western media often misunderstands or oversimplifies China's grain import strategies, focusing too heavily on immediate price signals rather than long-term planning and structural changes in China’s agricultural sector.

Global factors such as weather issues and geopolitical dynamics impact grain availability and prices. As a result, China's import strategies remain adaptive, focusing on securing necessary supplies despite fluctuating global conditions.

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Seasonal Eats: Fresh Summer Tomatoes & Classic Caprese Salad 

Dive into the summer with Seasonal Eats, focusing on fresh, in-season produce, and this time, we spotlight the versatile tomato. As tomatoes ripen, a wide variety becomes available, perfect for dishes like chilled gazpacho, zesty salsas, or simple salads.

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John Deere’s Path to Earn Back Trust

Farmers became increasingly frustrated with John Deere’s focus on social signaling and bottom-line at-all-costs mentality. The company has made major shifts to show customers it is listening. Is Big Green doing enough to win back trust?

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Is ADM a buy? AiQ shows commodity trends will be a tailwind.

In January, Nico explained “what might have happened” at ADM. It turned out to be pretty accurate. The markets have punished ADM’s stock price. Nico has come 180 degrees to explain why ADM might now be a buy, and the latest commodity trends will shift to tailwinds for the company.

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