In just four years, U.S. production of canola has expanded by 73 percent, albeit from a smaller base. The production of biodiesel and renewable diesel are the drivers but more interesting is how part of the expansion is occurring. The incentives remain large for using oilseeds as feedstock for biodiesel and renewable diesel. In addition to the federal tax credit, California’s Low Carbon Fuel Standard mandates that the carbon intensity of ground transport fuel be cut by 10 percent by 2022 and by 20 percent by 2030. Over the past nine years, California’s use of renewable diesel has increased by over 450 percent. The expected next large demand for renewable diesel is Sustainable Aviation Fuel, as the federal incentive is 75...
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...
Key Takeaways: Drought remains a major threat to global agricultural production, particularly in regions with limited rainfall and growing water scarcity. Commercially available drought-tolerant traits in corn, soybeans, and wheat have generally delivered modest yield improvements, limiting th...
Key Takeaways: Peace at last in the Persian Gulf? Over the weekend, the U.S. announced and Iranian officials confirmed a peace agreement, with formal ratification set for Geneva on 19 June. The announcement means the Strait of Hormuz is set to reopen fully and toll-free within 30 days.&n...
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.