Just as hopes were high for resuming ethanol exports to China under the Phase One deal to be signed this week, China is suspending its national E10 ethanol blending plan which was to be in effect in 2020. While the E10 goal was never realistic – USDA’s FAS post in China estimated mid-way through last year the blend rate in 2019 would be about 2.5 percent - export prospects are now uncertain as China backs off its general aspirational goals on promoting ethanol use. At least for 2020, China’s ethanol policy will remain a patchwork of local and provincial programs. Domestic production is capped by a number of factors in addition to available feedstock, including a lack of funding for continued subsidies to build...
This morning’s Consumer Price Index (CPI) report makes it less likely that the Fed will hike short-term rates at the September Federal Open Market Committee (FOMC) meeting. Consumer prices declined in June as energy prices moved sharply lower following a temporary peace agreement between...
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.