Expanded ethanol production and a bullish outlook mean higher corn grind for this industry in 2017.The U.S. Energy Information Administration (EIA) indicates ethanol production closed CY 2016 with another weekly production record, averaging 1.043 million barrels/day for the week ending 30 December. It was the 10th week in a row that daily production averaged more than 1 million barrels. For corn’s MY 2016/17 (1 September-31 August), ethanol production is up 4 percent over last year.Total production through week 18 of the corn marketing year is 5.333 billion gallons. If this pace continues, the marketing year total would be 15.5 billion gallons. That tracks with WPI’s projection that production will total 15.5-15.75 billion gallons in CY 201...
What You Need to Know Today: Commodities were mostly lower across the board today after yesterday’s Federal Reserve meeting hinted at a potential interest rate hike later in 2026. The dollar index reached its highest level in over a year, and a strong dollar makes U.S. agricultural expor...
Tomorrow is the Juneteenth federal holiday, and the USDA, along with the rest of the federal government and the CME, will be closed, so the monthly Cattle on Feed report was released a day early. The total number of cattle on feed in feedlots with 1,000 head or more capacity on 1 June amounted...
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.