Ethanol Politics The U.S. drought is putting the heat on both crops and the biofuels mandate. Livestock groups asked the Environmental Protection Agency (EPA) today to waive part or all of the ethanol mandate, and they will soon be joined by some state-level officials. Ethanol lobbyists remain steadfast in their opposition to a waiver but biodiesel lobbyists issued a more nuanced rebuttal. They noted the flexibility of the industry via Renewable Identification Numbers (RINs) and deferrals to produce just half the mandated amount. Some crop scouts are now predicting a sub-11 billion bu corn crop, and if some severe rationing of demand has to occur, ethanol opponents believe their nemesis is headed for a big black eye in the public arena...
What You Need to Know Today: Cattle futures extended their sharp selloff Friday as weakening cash cattle prices, deteriorating feedlot profitability, and reduced packer demand continued to weigh on the market. The inability of futures to sustain a rally following last week's bullish Cattle on...
As predicted, the Federal Reserve held rates steady at the last meeting before the midterm elections, likely in part because of the election (see WPI 19 October and 22 September). The decision comes at the tail end of a midterm election cycle that has been marked by the two parties campaigning...
Key Takeaways: WPI’s new EU rapeseed crushing margin models point to weaker processing returns over the next four months due to higher rapeseed procurement costs and weaker product values. Statistical forecasts call for German crushing margins to decline from €181/MT to €...
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.