Whispered RFS Changes Nearby corn settled at $7.73 today and December at $7.08, implying to some that the new crop is around 145 bushels per acre, not the 166 BPA last ventured by USDA. This brought about a market rumor that U.S. Environmental Protection Agency is going to lower the ethanol mandate by 20 percent. It is unclear where the 20 percent number came from but, apparently alluding to recent news reports about members of Congress trading in financial markets based on their inside knowledge, one market observer suggested that perhaps government officials had whispered it to friends. The situation illustrates the problem with the currently structured off-ramp for altering the Renewable Fuel Standard in the event of a market shock. I...
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.