Insensitive Ethanol Rhetoric While it is still possible that this year's U.S. corn crop will be sufficient to satisfy all users, there is a growing list of doubters. Private predictions continue falling, with talk of another 1 billion bushels of demand needing to be rationed. Pressure on the ethanol industry to give way for food is growing. The industry has reacted by saying that drought -- not the Renewable Fuel Standard (RFS) -- is contributing to higher grain prices, and with the Orwellian comment that any increase in food prices will be offset by lower gas prices. That means that higher gas prices would be offset by lower food prices if not for the RFS. The bottom line is that gas is more elastic in demand than food, and the latter m...
Key Takeaways: President Trump announced $8 billion in additional agricultural assistance through the Harvest Fuel Relief Program, as USDA projects farm fuel and oil expenses will increase 28.8 percent in 2026. The package follows $12 billion in earlier relief, while government farm payments w...
Key Takeaways: A student group from the University of Chicago is protesting to bring back onion futures trading. Trading in onion futures was banned in 1958 following a spectacular bout of market manipulation that resulted in a corner of the physical market. The ban on onion futures led t...
Beef packer margins deteriorated to $141/head last week, down $55 from the prior week as fed cattle prices strengthened while the Choice cutout remained nearly unchanged. The cutout held near $373/cwt while fed cattle prices climbed $4/cwt to $224/cwt, narrowing processor profits. Despite the d...
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.