Energy markets are being buffeted by a number of global events and collapsing oil prices are putting ethanol under pressure. The nearby ethanol futures contract dropped this morning below $1.20/gal, which is the record low close set in November 2018. The contract closed at $1.2229/gal. Of course, the energy market fundamentals put the spotlight on what might happen with the small refinery exemptions (SREs) issued by EPA as the Department of Justice (DOJ) is considering whether to challenge the 10th District federal court ruling about the SREs. Increased volumes and stronger RINs prices are a life jacket for ethanol to float through the bearish blending economics that will likely come from low crude oil and gasoline prices. But the e...
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
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.