Whispered RFS Changes Nearby corn settled at $7.73 today and December at $7.08, implying to some that the new crop is around 145 bushels per acre, not the 166 BPA last ventured by USDA. This brought about a market rumor that U.S. Environmental Protection Agency is going to lower the ethanol mandate by 20 percent. It is unclear where the 20 percent number came from but, apparently alluding to recent news reports about members of Congress trading in financial markets based on their inside knowledge, one market observer suggested that perhaps government officials had whispered it to friends. The situation illustrates the problem with the currently structured off-ramp for altering the Renewable Fuel Standard in the event of a market shock. I...
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.