Key Takeaways:
Ethanol margins continue to retreat from recent highs as rising costs – particularly corn and natural gas – offset gains in ethanol and DDGS values. WPI’s models expect ethanol margins to broadly follow their seasonal pattern, declining into the new year, with margins falling to -$0.13/gallon by mid-December. Weaker returns to ethanol production are not likely to materially damage corn demand or ethanol output, with WPI’s models calling for more corn use than EIA and USDA figures suggest. Biodiesel margins remain just shy of record highs as strong D4 RIN prices and near-record-high biodiesel prices support returns. Biodiesel remains vulnerable to political changes, with the industry responding t...
What You Need to Know Today: U.S. and Chinese officials are expected to discuss agriculture and non-tariff trade barriers ahead of Chinese President Xi Jinping’s visit to Washington later this month, potentially opening the door to additional U.S. agricultural purchases or improved marke...
The U.S. will observe Labor Day on Monday, 7 September. U.S. markets and the WPI office will be closed that day. The next edition of Ag Perspectives will be published Tuesday, 8 September...
Key Takeaways: Drought and changes to the multi-year trend in cow slaughter and retention have the potential to dramatically alter beef trim supplies and pricing, and WPI specifically models three different drought scenarios for fall 2026. Based on our models, WPI expects 90 percent lean...
