Ethanol exports are starting the year strong, but there is some uncertainty in major markets.The March World Agricultural Supply and Demand Estimates (WASDE) report from USDA raised the estimate of corn to be used in ethanol production by another 50 million bushels to 5.4 billion during the 2016/2017 marketing year. For the calendar year to date, the weekly average production of ethanol is more than 1.044 million barrels per day, which on an annualized basis would result in 16.01 billion gallons. Obviously, with a cap on conventional ethanol use of 15 billion gallons under the Renewable Fuel Standard (RFS), there is a large amount of U.S.-produced ethanol that needs to find a home in the export market.Last year, according to data from the E...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
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.