Another Ethanol Victory The ethanol industry scored two wins this week. House Republicans trying to eliminate the ethanol industry’s tax breaks as part of a debt ceiling bill conceded to their Midwest colleagues by keeping the incentive intact. Then on Friday, the Biden Democrat-run U.S. Environmental Protection Agency announced it would allow E15 ethanol to be sold this summer without restriction. Because ethanol has a higher volatility (evaporation) rate than gasoline in hot weather, the allowed blend rate is typically rolled back to a 10 percent level. The agency’s rationale for allowing the higher blend is the impact of Putin’s war in Ukraine on gasoline prices and to prevent fuel shortages. The argument is a little s...
The U.S.-Mexico-Canada Agreement (USMCA) enters its mandated six-year review on 1 July. The original intent of the review is outlined in Article 34.7, which obligates members to: Provide recommendations and decide on appropriate actions. Extend the USMCA for another 16 years and meet aga...
Key Market Insights Geopolitical Limbo: Geopolitical risk remained a key driver across global commodity markets today. President Trump stated that the Iran memorandum of understanding is not yet final and warned that military action could resume if negotiations fail. Both sides continue w...
From WPI Consulting
Forecasting developments in production agriculture
On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.