World Perspectives
biofuel

Flooding Gives Bump to Ethanol, but for How Long?

The weather markets have hit ethanol, providing some welcomed price relief. The flooding in the Corn Belt has interrupted shipping/delivery and given a bump to ethanol prices, especially on the West Coast. Right now, producer margins are improved, and blender margins are tighter. Gasoline prices remain well below year-ago levels as overall supplies remain near the peak of their five-year average. While blending components for ethanol are now back down to 2018 levels, that draw is from a steep build earlier in the year.

How long this situation lasts and what the longer-term impact on margins will be are still to be determined. First, there will be repercussions in the corn market from the Midwest flooding; and second, the transportation...

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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.

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