World Perspectives
biofuel energy

Quick Hits: Ethanol and Biodiesel Margins Update

Ethanol Ethanol production margins continue to experience a counter-seasonal surge, with the energy market rally driving the bulk of the move. Prior to the closure of the Strait of Hormuz in the Persian Gulf, U.S. ethanol margins were already trending above year-ago levels by $0.10-0.20/gallon. The war and the subsequent rally in energy values rapidly changed that, and margins last week were hovering near levels typically reserved for early autumn.  Margins last week averaged $1.34/gallon, per USDA data, with gains in ethanol values (which broke $2/gallon for the first time since September 2025), corn oil, and DDGS all contributing to the enhanced profitability. The gains in product and co-product values have far outpaced increases in...

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From WPI Consulting

Weighing in on strategic realignment

WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.

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