Ethanol groups continue to push for EPA to increase the Required Volume Obligations (RVO), arguing that the agency was overly dismissive of E15 and E85 use of ethanol. Ethanol's Price Exceeds Gasoline's Ethanol futures hit their highest level in two and a half years early this week, reaching north of $3.00. This was the first time that the nearby ethanol futures contract eclipsed the Reformulated Gasoline Blendstock for Oxygenate Blending (RBOB) futures price. However, cash prices on the coasts have exceeded $4.00 recently, and cash ethanol has outpaced RBOB for much of February. Rail logistic problems have ethanol displaced and plant storage is running near capacity, which has even caused production slowdowns. The new pricing is a respon...
What You Need to Know Today: U.S. weather is getting more attention this week as conditions vary greatly across the western, central, and eastern corn belts, with the different regions battling dryness and too much rain simultaneously. The ProFarmer Crop Tour began today in Indiana and Nebrask...
Key Takeaways: Argentina is on pace for a record corn crop and record exports in the current marketing year, with abundant supplies likely to keep the country highly competitive in global export markets. Argentina’s record exportable surplus is allowing it to offer highly competitive pri...
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.