Things are looking up for the Brazilian sugarcane sector despite world sugar prices stuck at near-two-year lows of 19 cents per pound (U.S. sugar prices are about 25 cents per pound). Brazil's main sugar producing region, the Center South, is about halfway through this year's harvest of a 510 MMT crop, which is up from last year's 494 MMT crop. Regardless of low prices and a growing supply, however, ethanol is coming to the rescue.First of all, Brazil will increase its blending rate from the current 20 percent ethanol to 25 percent beginning on 1 April. By 2020, the long-term goal is 30 percent. The increased blend rate next year should increase Brazilian domestic ethanol consumption by about 550 million gallons. Second, the U.S. Renewabl...
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
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.