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: Wheat prices surged after Ukrainian strikes on Russian vessels and infrastructure disrupted grain shipments, halting traffic through the Sea of Azov, Kerch Strait, and Black Sea. The July WASDE report offered a modestly supportive outlook for corn, wheat, and soybe...
The trade deficit in goods and services came in at $77.6 billion in May, slightly smaller than the consensus estimate of $78.4 billion. After a few months of relative stability, the trade deficit widened in May. The increase in the deficit for the month was due to both a rise in imports, which...
Every June combines begin their annual sweep across the winter wheat fields of Texas, Oklahoma, and Kansas. At the same time, USDA releases its Acreage and Crop Progress reports, providing the first comprehensive look at the size and condition of the crop. Most years the reports simply confirm...
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.