As we have reported in the past, the disparity in Renewable Identification Number (RIN) prices for conventional versus advanced ethanol has been a de facto subsidy for Brazilian ethanol to enter the U.S. market. This is ironic because the secondary tariff on Brazilian ethanol was removed when the Volumetric Ethanol Excise Tax Credit (VEETC) was eliminated at the end of 2011. The tariff originally was put in place so that the VEETC benefit would apply only to domestic ethanol and not to imports. But with both tax provisions gone, the RIN issued for compliance with the Renewable Fuel Standard (RFS) has become a larger force in ethanol blending economics.RIN prices for conventional ethanol are now about 4.85 cents, while RIN prices for advan...
What You Need to Know Today: Commodities were mostly lower across the board today after yesterday’s Federal Reserve meeting hinted at a potential interest rate hike later in 2026. The dollar index reached its highest level in over a year, and a strong dollar makes U.S. agricultural expor...
Tomorrow is the Juneteenth federal holiday, and the USDA, along with the rest of the federal government and the CME, will be closed, so the monthly Cattle on Feed report was released a day early. The total number of cattle on feed in feedlots with 1,000 head or more capacity on 1 June amounted...
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.