Looking at the ethanol sector, it is the classic good news/bad news scenario with the former coming in the short term and the latter occurring over the next year or so.Good NewsFirst, corn prices remain low, and that is helping sustain margins for ethanol mills as well as boost production. Through the week ending 11 August, output was averaging 1.02 million barrels per day, which equates to 15.7 billion gallons of ethanol. For reference, last year’s total production was 15.33 billion gallons.Second, gasoline production by U.S. refineries has been above the five-year average and near record levels for the first half of 2017. For the week ending 21 April 2017, U.S. refinery runs exceeded 17.5 million barrels/day for the first time since the U...
What You Need to Know Today: Commodities were mostly lower across the board today after yesterday’s Federal Reserve meeting hinted at a potential interest rate hike later in 2026. The dollar index reached its highest level in over a year, and a strong dollar makes U.S. agricultural expor...
Tomorrow is the Juneteenth federal holiday, and the USDA, along with the rest of the federal government and the CME, will be closed, so the monthly Cattle on Feed report was released a day early. The total number of cattle on feed in feedlots with 1,000 head or more capacity on 1 June amounted...
From WPI Consulting
Infrastructure investment due diligence
On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.