President Biden announced plans to release 30 million barrels of oil from the Strategic Petroleum Reserve (SPR). Other countries who are members of the International Energy Agency (IEA) will release another combined 30 million barrels to add 60 million of supply for world market to ease the oil impact of the Russian war in the Ukraine. As of Friday 25 February, the SPR had 580 million barrels: 252.5 million of sweet crude and 327.5 million of sour crude. The capacity of the SPR is 714 million barrels, so the inventory is at about 80 percent of capacity and at its lowest inventory in 20 years. On 23 November 2021, Biden released 50 million barrels from the SPR, also along with an IEA coordinated release. The SPR release came in the form of...
What You Need to Know Today: The hot, dry weather forecast continues to drive strength in grain futures with corn and soybeans hitting another day of strong gains. Monday’s Crop Progress and Conditions data were in line with market expectations and showed relatively few concerns for the...
Yesterday we wrote about the Q1 GDP numbers and the June employment reports in an article entitled Real GDP for Q1 Relying on AI Buildout, Held Back by Consumer Spending. That article mentioned that consumer spending had become a drag on GDP. Nonetheless, real GDP in Q1 was revised upward to 2...
Key Takeaways: The Middle East and North Africa's arid climate and limited water resources have created a structural dependence on imported wheat. Government wheat tenders in major importing countries serve as important benchmarks for global trade, providing insight into exporter competitivene...
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.