The June ethanol futures contract hit a record high last week at $2.29/gallon but that may not have a lasting effect on exports. The market has been in recovery mode as transportation fuel demand recovers from COVID restrictions that had sent ethanol values last year to a 10-year record low of less than 80 cents/gallon. Ethanol exports also tanked last year as global demand sunk along with prices. While the demand for ethanol exports is not indifferent to price, there are other factors shaping the market. As an additive to gasoline, ethanol demand is impacted by the price of petrol, the market demand for gasoline, and regulatory requirements for its use. Marketers have been suggesting that ethanol could fill the short-term gap in gas...
What You Need to Know Today: Corn and soybean futures were lower to open the week, with funds still in control and in a selling mood. The upcoming WASDE report on Tuesday is also likely to feature larger corn and soybean stocks, which helped put grain futures on the defensive. Wheat futures we...
Key Takeaways: Currency exchange rates influence agricultural export competitiveness and producer profitability, even when underlying commodity prices remain unchanged. A weaker domestic currency allows agricultural exporters to receive more local currency for dollar-denominated sales, potenti...
Although inflation has remained elevated since the post-COVID surge, it steadily moderated until the past year. More to the point, today’s inflation looks very different from 2022, when the Consumer Price Index (CPI) peaked at 9 percent. During and after the pandemic, the M2 money supply...
Soybeans Brazil Last week was once again very quiet, with very few trades. There is little activity in Brazil's old-crop market, with virtually no old-crop offers remaining for November. Brazil's export lineup for November and December is currently much smaller than last year's. After exporting...
From WPI Consulting
Infrastructure investment due diligence
On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.