World Perspectives
biofuel

Flooding Gives Bump to Ethanol, but for How Long?

The weather markets have hit ethanol, providing some welcomed price relief. The flooding in the Corn Belt has interrupted shipping/delivery and given a bump to ethanol prices, especially on the West Coast. Right now, producer margins are improved, and blender margins are tighter. Gasoline prices remain well below year-ago levels as overall supplies remain near the peak of their five-year average. While blending components for ethanol are now back down to 2018 levels, that draw is from a steep build earlier in the year.

How long this situation lasts and what the longer-term impact on margins will be are still to be determined. First, there will be repercussions in the corn market from the Midwest flooding; and second, the transportation...

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Illuminating the value of technical research

On behalf of a commodity producer organization, WPI evaluated the outputs from a project that featured a $5 million investment into technical research over multiple years. WPI’s team captured the results of this extensive effort and synthesized them for presentation to the organization’s governing board; among the findings uncovered and presented for the first time was the development of genomic traits proven, via rigorous testing, to provide crop yield advantages of 50 percent or more to U.S. farmers in times of drought. Capturing measurable results from long-term efforts can be challenging. Educating clients on the dynamics of success measurement when quantifiable results are not readily available requires deep client-consultant collaboration and an ability to consider both near- and long-term client aspirations with market/policy dynamics – attributes that WPI brings to every consulting engagement.

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