So far in September, ethanol has been more expensive than reformulated blendstock for oxygenated blending (RBOB) – i.e., the unleaded gasoline. This skews the blending economics of ethanol, which are not currently positive.According to the U.S. Department of Transportation, motorists logged a record 283.7 billion miles on U.S. roadways in July, typically one of the highest mileage months because it is in the height of the summer vacation period. The total was 4.2 percent higher than July 2014. Meanwhile, miles driven through the first seven months of this year are up 3.6 percent. The average pump price in July 2015 was $2.88/gallon, down nearly 22 percent from the average $3.68/ gallon during the same month a year ago. With all of this driv...
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
Monday, 25 May is a U.S. holiday, and both the markets and our office will be closed. Please note that the next issue of Ag Perspectives will be published on Tuesday, 26 May. The WPI staff wishes everyone a safe and enjoyable holiday weekend...
USDA’s monthly cattle on feed report was released today. The total number of cattle on feed in feedlots with 1,000 head or more capacity amounted to 11.6 million head, 102 percent of last year. Source: USDA, WPI Placements were up, but part of that is attributable to persistent drought c...
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.