Few Ethanol Options Reuters reports that President Trump met today with USDA Secretary Sonny Purdue and EPA Administrator Andrew Wheeler to receive options on boosting the disappearance of ethanol. Plants are shuttering, and the EPA’s granting of hardship waivers from the ethanol blending requirement is being blamed. Rumored options include reversing the waivers or transferring the obligations to larger entities. Neither idea is a particularly good plan. Optimally, more of the fuel would be exported, particularly given its attractive price relative to gasoline – a 15 percent discount FOB/Gulf. The export market must grow faster, or else capacity will have to be realigned with domestic demand. Tsk-Tsk, Tusk 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
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.