Recent Biofuels Analysis
Policy Round Up
India Trade The Ministry of Commerce and Industry is reporting that progress is being made in trade negotiations with the U.S. and details could be forthcoming within a couple of weeks. In fact, India is stepping up their trade agenda across the board. India moved this week on a tra...
Market Commentary
A lack of follow-through buying in wheat during the overnight session created a weaker open at the CBOT today. Soyoil led the soy complex lower while corn moved to slight losses in extremely low volume trading. Wheat gave back most of its gains from yesterday, signaling that yesterday’s r...
Market Commentary
The CBOT today saw light liquidation in soybeans, early short covering in corn that eventually broke down into a lower close, and continued bull spreading in soyoil. The ongoing U.S. harvest remains a bearish factor with cash sales accelerating and weakening basis levels. Overall, the market wa...
Odd Ethanol Economics
The Golden state is being challenged over the saying, as goes California, so goes the Nation. Egg farmers in other states are challenging Sacramento’s dictate on how they farm, and the Trump Administration is challenging the state on at least two fronts: the imposition of its own stiffer...
Ag Review - October 2019
WPI's monthly publication features a review of the past month's market and policy developments. This issue covers changes in China’s meat consumption, a review of the Department of Commerce’s international trade report and what it might tell us about the U.S. economy, an overview of...
House Biofuel Hearing on “Abuse of Secret Waivers” - Octane Standard Proposed
The House Energy and Commerce Committee held a hearing this morning entitled, “Protecting the RFS: The Trump Administration’s Abuse of Secret Waivers” about the small refinery exemption (SRE) process. Specifically, the hearing focused on a legislative proposal sponsored by Hou...
SRE Saga Continues; Administration Ready to be Done
As we’ve noted, both the biofuels and petroleum industry are less than impressed with the Administration’s plan to reallocate SREs as a supplement to the 2020 required volume obligations (RVOs). Both industries have reacted negatively and RINs prices have dropped, but the plan is un...
China In-Country Analysis
Macroeconomics China’s Monthly Food Inflation Highest in Eight Years The sharp rise in live hog prices along with increases in the costs of poultry and seafood, pushed up food inflation in September to its highest level since October 2011. Back in 2011, China was going through a maj...
EPA Biofuel Plans Locks in E15
The Trump Administration rolled out its proposed reforms to the biofuels required volume obligations (RVO) today. • EPA will project the amount of SRE’s exempted in a program year by using as a reference the past three years’ volumes recommended by the Department of...
Biofuel Rule Moving Forward; Record Ethanol Inventory Drop
Last Friday, the Administration announced its plans to boost the ethanol volumes under the RFS to “more than 15 billion gallons,” however, as we reported on Tuesday of this week, it is more likely that EPA will set ethanol Renewable Volume Obligation (RVO) for 2020 to net out...
Market Commentary
Trading started out on a firmer note before bulls backed off and let prices drift lower into the close. The trade is cautious of being too bullish about the October WASDE, having projected bullish statistics for almost every report this summer, only to have USDA release big crop/big stocks numb...
Ethanol Increase: More Art than Science
EPA will set ethanol Renewable Volume Obligation (RVO) for 2020 to net out at 15 billion gallons; that is the latest word on the new biofuels package proposed by the Administration according to commentary from EPA Administrator Andrew Wheeler. The 2020 RVOs have been a political hot potato for...
Policy Round Up
India Trade The Ministry of Commerce and Industry is reporting that progress is being made in trade negotiations with the U.S. and details could be forthcoming within a couple of weeks. In fact, India is stepping up their trade agenda across the board. India moved this week on a tra...
Market Commentary
A lack of follow-through buying in wheat during the overnight session created a weaker open at the CBOT today. Soyoil led the soy complex lower while corn moved to slight losses in extremely low volume trading. Wheat gave back most of its gains from yesterday, signaling that yesterday’s r...
Market Commentary
The CBOT today saw light liquidation in soybeans, early short covering in corn that eventually broke down into a lower close, and continued bull spreading in soyoil. The ongoing U.S. harvest remains a bearish factor with cash sales accelerating and weakening basis levels. Overall, the market wa...
Odd Ethanol Economics
The Golden state is being challenged over the saying, as goes California, so goes the Nation. Egg farmers in other states are challenging Sacramento’s dictate on how they farm, and the Trump Administration is challenging the state on at least two fronts: the imposition of its own stiffer...
Ag Review - October 2019
WPI's monthly publication features a review of the past month's market and policy developments. This issue covers changes in China’s meat consumption, a review of the Department of Commerce’s international trade report and what it might tell us about the U.S. economy, an overview of...
House Biofuel Hearing on “Abuse of Secret Waivers” - Octane Standard Proposed
The House Energy and Commerce Committee held a hearing this morning entitled, “Protecting the RFS: The Trump Administration’s Abuse of Secret Waivers” about the small refinery exemption (SRE) process. Specifically, the hearing focused on a legislative proposal sponsored by Hou...
SRE Saga Continues; Administration Ready to be Done
As we’ve noted, both the biofuels and petroleum industry are less than impressed with the Administration’s plan to reallocate SREs as a supplement to the 2020 required volume obligations (RVOs). Both industries have reacted negatively and RINs prices have dropped, but the plan is un...
China In-Country Analysis
Macroeconomics China’s Monthly Food Inflation Highest in Eight Years The sharp rise in live hog prices along with increases in the costs of poultry and seafood, pushed up food inflation in September to its highest level since October 2011. Back in 2011, China was going through a maj...
EPA Biofuel Plans Locks in E15
The Trump Administration rolled out its proposed reforms to the biofuels required volume obligations (RVO) today. • EPA will project the amount of SRE’s exempted in a program year by using as a reference the past three years’ volumes recommended by the Department of...
Biofuel Rule Moving Forward; Record Ethanol Inventory Drop
Last Friday, the Administration announced its plans to boost the ethanol volumes under the RFS to “more than 15 billion gallons,” however, as we reported on Tuesday of this week, it is more likely that EPA will set ethanol Renewable Volume Obligation (RVO) for 2020 to net out...
Market Commentary
Trading started out on a firmer note before bulls backed off and let prices drift lower into the close. The trade is cautious of being too bullish about the October WASDE, having projected bullish statistics for almost every report this summer, only to have USDA release big crop/big stocks numb...
Ethanol Increase: More Art than Science
EPA will set ethanol Renewable Volume Obligation (RVO) for 2020 to net out at 15 billion gallons; that is the latest word on the new biofuels package proposed by the Administration according to commentary from EPA Administrator Andrew Wheeler. The 2020 RVOs have been a political hot potato for...