There was a lot to sort through on Tuesday’s RVO announcement. Below is a look at some key issues. SREs: There has been a lot of media coverage implying that the EPA will deny all pending small refinery exemption (SRE) requests. But as we wrote on 7 December, that action would be “subject to a notice and public comment review since it is a change in EPA’s process on SREs.” Specifically, EPA is calculating a low and high end of a range for SREs. At the low end, EPA is considering the exempted volume is zero; at the high end, EPA is calculating SREs based on the “same methodology used in the 2020 final rule.” That would be 8.19 billion gallons of total fuel (not biofuel) produced by small refi...
Key Market Insights The broad market is locked in on this week’s Trump-Xi meeting in Beijing, but this is no longer just a trade summit. Increasingly, the meeting is becoming tied directly to Iran, energy security, and the growing global economic fallout from disruptions through the Strai...
From WPI Consulting
Communicating importance of value-added products
Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.