One factor the U.S. Environmental Protection Agency (EPA) will rely upon for its analysis of the Renewable Fuel Standard (RFS) on corn prices is the price of corn ethanol Renewable Identification Numbers (RINs). Indeed, there has been a lot of discussion about RIN prices and corn prices. The latest rough calculation by Seth Meyer of the UN FAO and Nick Paulson of the University of Illinois and FarmDoc concludes that the RIN component of corn price is about equal to 2.8 multiplied by the ethanol RIN price. According to Meyer and Paulson, "For example, with 2012 ethanol RIN prices reported between $0.04 and $0.05 per gallon in August, the total implied support to corn prices is in the range of $0.11 to $0.14 per bushel."The point being that...
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
Communicating importance of value-added products
Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.