Government Markets Typically Gamed The EU member states voted to impose a 9.6 percent tariff on ethanol imported from the U.S. over the next five years, as they claim that the fuel is cheap and subsidized. U.S. ethanol is a mandated market, which makes it a rather indirect subsidy. Ethanol makers would certainly say it is too low-priced to be profitable but that is due to a variety of reasons, including rebounded production by Brazil now that it has a decent sugar crop. The problem isn't subsidies, but rather the contortions that occur whenever government attempts to make a market instead of simply living off of it.The latest fine example of why biofuel mandates are problematic is the so-called "train to nowhere." Bioversel Trading Inc...
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
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.