Key Takeaways:
Ethanol margins continue to retreat from recent highs as rising costs – particularly corn and natural gas – offset gains in ethanol and DDGS values. WPI’s models expect ethanol margins to broadly follow their seasonal pattern, declining into the new year, with margins falling to -$0.13/gallon by mid-December. Weaker returns to ethanol production are not likely to materially damage corn demand or ethanol output, with WPI’s models calling for more corn use than EIA and USDA figures suggest. Biodiesel margins remain just shy of record highs as strong D4 RIN prices and near-record-high biodiesel prices support returns. Biodiesel remains vulnerable to political changes, with the industry responding t...
As WPI reported on 21 August, President Trump has announced a 90-day window during which up to 300,000 metric tons of product for ground beef could be imported outside of tariff-rate quotas, which stand at 26.4 percent, allowing imports at 4.4 cents per kg, a move aimed at bringing down costs f...
Key Takeaways: Imports supply 70–75 percent of U.S. lamb disappearance, with Australia and New Zealand accounting for nearly all imported volume. The deficit is structural, not cyclical: domestic production cannot scale quickly enough to displace imports or reset the market’s refer...
What You Need to Know Today: The day belonged to the bulls as fund buying and technical momentum boosted corn, soybeans, and wheat to new rally or contract highs. Wheat futures exploded Wednesday around the world after Russia indicated it will increase its attacks on Ukrainian export infrastru...
