Policy Impacts of Drought Today's WASDE report from USDA, with its sharp cut in corn yields, is having several important tangential policy impacts:
Ethanol: Rumors of possible reductions in the ethanol mandate have been floating in Chicago, but USDA Secretary Tom Vilsack today said, "We have no plan to adjust the Renewable Fuel Standard." Note that the next major crop report from USDA likely will include a sharp reduction in harvested acres as a result of the drought. Export Embargo: The trade was incensed today over a remark by one Obama Administration official that it is "premature" to discuss a grain export embargo. By saying it is premature means that it is not out of the realm of possibility -- though that seems highly unlikely...
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 €...
