President Biden ordered the release of 50 million barrels of crude oil from the Strategic Petroleum Reserves (SPR) to ease gas prices. The release will be in the form of a 32-million-barrel exchange solicitation to be open for bids tomorrow and the accelerating of 18 million-barrel to be sold which were already Congressionally mandated under the authority of the Bipartisan Budget Act of 2018. If the goal was to lower energy prices – or at least politically to show effort in trying to reign in expensive energy - the announcement may have backfired. Crude oil futures closed up today, as did natural gas and ethanol futures. Ethanol remained unchanged. WTO crude oil futures rose yesterday as well, in anticipation not o...
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.