Biofools Bull Market economists hate government policy intrusions and the requirement to blend biofuels ranks among the most egregious but there is curiosity in a recent related controversy. Vegetable oil has been under downward price pressures in part due to reports that the Biden Administration is developing blending targets that will be flat or declining to balance the interests of petroleum refiners and the clean energy agenda. First, this President claims to want to replace fossil fuels with cleaner energy so why would he slow the evolution of that process? The question is especially pertinent given the outcome of a court case regarding the small refiner exemption. While the crux of the case is whether EPA has the authority to grant w...
Key Takeaways: The CME Group is launching new 90 percent Lean Beef and 50 percent Lean Beef futures and options contracts in July. There are five key factors that must be present in physical markets and futures contract specifications for futures contracts to become successful. The two l...
What You Need to Know Today: The hot, dry weather forecast continues to drive strength in grain futures with corn and soybeans hitting another day of strong gains. Monday’s Crop Progress and Conditions data were in line with market expectations and showed relatively few concerns for the...
From WPI Consulting
Communicating importance of value-added products
Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.