World Perspectives

Insulated Sugar/Ethanol Markets

Global sugar prices are up 55 percent over a year ago due to a weather shortened Brazilian cane crop. The price is still 23 percent below the peak it hit in 2011/12, but high enough to cause discomfort to users. By contrast, the U.S. sugar market is stable due to the government floor price. The U.S. sugar price averages 64 percent higher than world prices but in years like this one, the two come close with just a 32 percent premium in the American market.  Automotive fuel distributor in Brazil have asked the government to reduce the ethanol blend requirement from 27 percent to 18 percent due to both the higher price for sugar and corn as feedstocks. It has also heightened the interest by U.S. ethanol producers to have the Brazilian im...

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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.

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