When it comes to supply/demand analyses for corn, ethanol has taken over the top spot on the demand side of the equation, at least temporarily. Back in 2009/10 feed/residual use was 5.125 billion bu while corn used for ethanol was 4.591 billion bu, according to USDA. However, in 2010/11 corn used for ethanol rose to 5.021 billion bu while feed use fell to 4.793 billion bu. USDA predicts that ethanol will widen its lead over feed in 2011/12 with 5.0 billion bu of corn consumed for ethanol, but only 4.550 billion bu going for feed use.If USDA's projections for 2012/13 hold up, feed/residual will retake the lead with feed demand jumping up to 5.450 billion bu while corn for ethanol stays flat at 5.0 billion bu. Assuming that corn feeding in...
Key Takeaways: President Trump announced $8 billion in additional agricultural assistance through the Harvest Fuel Relief Program, as USDA projects farm fuel and oil expenses will increase 28.8 percent in 2026. The package follows $12 billion in earlier relief, while government farm payments w...
Key Takeaways: A student group from the University of Chicago is protesting to bring back onion futures trading. Trading in onion futures was banned in 1958 following a spectacular bout of market manipulation that resulted in a corner of the physical market. The ban on onion futures led t...
Beef packer margins deteriorated to $141/head last week, down $55 from the prior week as fed cattle prices strengthened while the Choice cutout remained nearly unchanged. The cutout held near $373/cwt while fed cattle prices climbed $4/cwt to $224/cwt, narrowing processor profits. Despite the d...
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.