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: After a period of limited activity, USDA reported a sizeable 613 KMT in soybean export sales, including 330 KMT to China and 283 KMT to unknown destinations, potentially also China. The purchases represent a meaningful pickup in demand and bring China closer to ful...
Key Takeaways: Dry bulk markets remain mixed with Capesize vessels seeing continued pressure from weaker demand while fixtures and rate strength gradually increases towards the smaller vessel classes. Tanker markets are pulling back from their recent highs as tonnage moves out of the Mid...
The Trump import plan for 300,000 MT of beef supplies used for ground beef, i.e., lean trim, from September through November has, according to Secretary Brooke Rollins, brought some relief to beef prices. The Executive Order states that the Secretary of Agriculture will analyze and review the m...
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.