Renewable Identification Numbers (RINs) for conventional ethanol have been on a crazy bullish ride, going from 5 cents in December to 45 cents in February. They have now peaked above $1.05. That's a valuable market given the 13.8 billion gallons of conventional ethanol mandated under the proposed 2013 Renewable Fuel Standard (RFS).RINs are the 38-digit tracking mechanism for ethanol compliance. A RIN is generated when ethanol is produced, but it can be separated by the obligated parties (refiners and blenders) and sold on a secondary market to meet compliance with ethanol blending requirements even when physical ethanol is short. In any given year, 20 percent of RINs can be carried forward for future year compliance.So, that brings us to...
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.