Erroneous news leaks regarding biofuels policies sent commodity markets on a wild ride and prompted a rebuttal from the American Petroleum Institute. Amid all the confusion, claims, and counter claims, here is what WPI foresees regarding these issues:The markets took traders on a wild and bumpy ride today, as Bob Kohlmeyer details above (see Market Commentary in Ag Perspectives, 28 February, 2017), all over some inside the Washington D.C. beltway news leaks about biofuels policy. There are several issues hanging over the biofuels market on which we have commented and updated clients many times, but some of the more notable issues include:Point of obligation under the renewable fuels standard (RFS): Currently, refiners and importers are the...
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
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.