Ethanol's Lagging Support After correctly perceiving the drought drying up its political support in Washington, the ethanol industry is mounting a tour de force political and public relations campaign. The industry lost its direct tax credit subsidy, and the likelihood now seems lower for obtaining subsidies to boost the infrastructure necessary for efficiency and higher blends. Likely due to questionable greenhouse gas (GHG) savings and fear of the higher food prices, the EU is ready to trim back its biofuel mandate. It is proposing to end all public subsidies for crop-based biofuels after 2020. Importantly, its revised GHG calculations for biodiesel likely will slow the use of oilseeds and favor sugarcane ethanol for meeting renewable...
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...
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...
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.