On Friday we reported on the lobbying effort by merchant refiners – and more specifically their labor unions – to get a waiver from the RFS. But Friday was also the day that the Administration released its regulatory agenda, which included the following regarding the RFS and biofuels: 2022 RVOs: The 2022, and 2021, required volume obligations (RVO) are teed up to move soon. The Proposed 2022 RVO is scheduled to come in July and targeted to be finalized to meet the 30 November deadline. Since the 2021 RVO was never issued due to the COVID pandemic and the 2020 election, that rule will have the retroactive volumes for 2021 (as happened in 2016 when the 2015 and 2014 RVOs were set retroactively at the volumes actually used). Whil...
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
Communicating importance of value-added products
Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.