There are some real eyeopeners looking at the Energy Information Administration’s (EIA) year-end 2019 data. The long-term outlook for gasoline/motor fuel and thus ethanol and biofuels will be impacted by the trends in the chart below. The bottom-line is that since 2005 when the RFS was originally put in place, petroleum demand has barely changed – and if anything dropped somewhat with the RFS until 2018. Meanwhile, domestic production continued to increase. But look specifically what happened in 2016 when the U.S. ban on crude oil exports was lifted – production increased and net imports dropped dramatically. The incentive for production, and the industry’s response to it, has sparked...
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...
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.