Democrat Al Franken is declared the winner of the contested Minnesota
Senate Seat. Quotes from Al Franken, "Corn ethanol is a step on the way
to cellulosic ethanol, which is also going to benefit MN. I'm in the
pro-ethanol camp." and "it seems to me that ethanol already helps our
carbon footprint and it's only getting more efficient in the way it's
produced." Looks like another friend for ethanol on The Hill.
EIA Petroleum Marketing Monthly - April; International crude oil prices were influenced by modest signs of recovery in world financial markets and economies. Prices for key streams experienced less volatility over the course of the month, despite brimming inventories and some reports of an increase in output from some Organization of Petroleum Exporting Countries (OPEC) thanks to the focus on economic data trends. Prices took a step down at mid-month following the release of an International Energy Agency (IEA) report in which the organization reduced its oil demand forecast for 2009. U.S. inventory data showing crude oil stocks at long-term highs also pressured prices. Nevertheless, news suggesting some improvement in economic trends in major markets provided enough support to keep prices from experiencing more profound decreases...more
On Friday, June 26, 2009, the United States House of Representatives passed the Energy/Climate Bill (H.R. 2454) to create clean energy jobs, achieve energy independence, reduce global warming pollution and transition to a clean energy economy. The bill passed, 219-212, and all but eight Republicans voted against the bill, stating that the bill would end up being an energy tax, that would be paid for by American taxpayers. Additionally, 44 Democrats also voted against the bill, due to it having a disproportionate impact in states that are highly reliant on coal for electricity This is indeed the most far reaching energy bill to combat global warming. It is the “cap and trade” bill, which was written by the Democrats, and it establishes a national system to reduce greenhouse gases by 17 percent over the next 11 years, and by 83 percent by 2050. The "cap and trade" part of the bill established a market where factories, oil refineries and power plants could buy, sell and trade credits that would allow them to emit only so much carbon dioxide and other pollutants. The permissible amounts would be lowered over time. The 1,200 page bill also requires the broader use of renewable power, sets new standards for energy efficiency in homes and appliances, spurs development of electric vehicles and expands systems for transporting electricity...more
With respect to ethanol, and as discussed late last week, there was a major legislative development in Washington on Wednesday with respect to Indirect Land Use Change (ILUC). The subject had become a negotiating tool in the Climate Change bill. On Wednesday, House Agriculture Committee Chairman Collin Peterson released a statement announcing that an agreement had been reached, which effectively bars the EPA for five years from calculating indirect land use changes with respect to measuring greenhouse gas emissions. During the five year period, the EPA, USDA, National Academy of Sciences and others will work together to develop a more scientifically accurate model for the calculations. In a release, Peterson stated "We have reached an agreement that works for agriculture and contributes to the reduction of greenhouse gas emissions in the United States. This agreement also addresses concerns about international indirect land use provisions that unfairly restricted U.S. biofuels producers and exempts agriculture and forestry from the definition of a capped sector"
June 22, 2009 - Corn Crop Condition - 1% very poor, 5% poor, 27% fair, 56% good (45% last year), 11% excelllent (9% last year) http://www.twitter.com/EthanolMarket
June 22, 2009 - NYMEX gasoline fell 6.47 cents to 185.97 cpg, lowest close since May 26. CME EtOH off 2.8 cents to 168.0 cpg, CME corn down 14 cents at 385.2 cent per bushel. Crude down $2.62 at $66.93. This is lowest close since June 3 and the largest one day drop since May 15. Prices was on $73.23 on June 11, 2009 http://www.twitter.com/EthanolMarket
June 22, 2009 - After 54 straight days of increases, the national ave for regular gas fell Sunday down to 269 cpg. Prices are up over 60 cpg since ...less than 5 seconds ago...from our Twitter page, http://www.twitter.com/EthanolMarket
USDA World Agricultura;l Supply and Demand Estimates, June 10, 2009 COARSE GRAINS: U.S. feed grains supplies for 2009/10
are projected lower with reduced prospects for corn yields
and production. Corn production for 2009/10 is projected at
11.9 billion bushels, down 155 million from last months
projection. The national average yield is projected at 153.4
bushels per acre, 2 bushels lower as continued planting
delays through late May reduce yield prospects, especially for
the eastern Corn Belt. Early planting in the western Corn Belt
and improved crop conditions from last year at this time, as
reported in the June 8 Crop Progress, are expected to partly
offset the poor start to this yearÂ’s crop in other parts of the
country. Corn supplies are projected at 13.6 million bushels,
down 190 million bushels from 2008/09...more
Retired General Wesley Clark, co-chairman of Growth Energy, will deliver the keynote address at the 2009 Fuel Ethanol Workshop & Expo (FEW), which runs next Monday, June 15 through 18, at the Colorado Convention Center in Denver, Colorado. General Clark will speak at 8:30am on Tuesday.
On Thursday, June 11, 2009, Senator Jim Webb (D-VA), along with 20 other Senators, wrote to EPA Administrator Lisa Jackson Tuesday to request more comprehensive testing on ethanol prior to raising the ratio that can be mixed into gasoline. The letter emphasizes that air quality and technical issues should be explored, as well as potential adverse effects on consumers and livestock and poultry producers during these hard economic times. The letter was also sent to Steven Chu, Secretary of the Department of Energy; Tom Vilsack, Secretary of the Department of Agriculture; and Carol Browner, Assistant to the President for Energy and Climate Change. Par of the letter stated “While increased production and use of ethanol has helped advance the goal of energy independence, it has had the unintended consequence of sharply increasing costs for corn and other sources of feed,” says Webb. “This in turn has negatively affected beef cattle, dairy and poultry producers. I believe it is important to fully understand the impact that increasing the use of corn ethanol would have on food costs. Moreover, prior to increasing the percentage of ethanol that can be blended into gasoline, the EPA should study the effects of ethanol on emissions and durability of different types of gasoline-powered engines.”
However, last month, a report from the Congressional Budget Office (CBO) confirmed what many economists and industry experts have stating for months. The report concluded that using corn for ethanol has little impact on the price of food. Rather, the main culprits driving the higher cost of food are energy costs, excessive unregulated speculation in the commodities future market, and a weak dollar. The CBO analysis said that ethanol was only responsible for 0.5 to 0.8 percent of the rise in food prices.
Large uncertainties in calculating international land use change effects and associated greenhouse gas emissions remain in the Environmental Protection Agency’s life cycle assessment of biofuels for the Renewable Fuel Standard. The Biotechnology Industry Organization (BIO) today asked EPA to maintain flexibility to adjust and update the RFS regulations and the life cycle assessments of biofuels as the science matures. BIO submitted its comments at a public hearing on the Renewable Fuel Standard held by the EPA in Washington today.
Brent Erickson, executive vice president of BIO’s Industrial and Environmental Section, released the following statement:
“The Renewable Fuels Standard will be a critical tool to accelerate commercialization of advanced biofuels. As EPA’s preliminary analysis shows, advanced biofuels have the potential to help reduce atmospheric carbon dioxide by providing net carbon sequestration, while enhancing energy security and revitalizing rural economies...more
Text of RFA President Bob Dinneen speech at the Ethanol Summit in Brazill in early June 2009. How many of you are familiar with the Indianapolis 500? It’s a little car race we have in the States.
300,000 people attend, and millions more watch on television in the U.S. and around the globe.
How many people, like me, watched the race 10 days ago?
How many people think Sao Paulo native Helio Castroneves won that race?
Wrong! Well, he might have finished first. But the real winner of that historic race was Ethanol! Ethanol
is in its 3rd year as the official fuel of America’s biggest auto race.
After all, there is no more demanding test for a fuel than racing at the Indy 500. The racecars reach speeds averaging 220 miles per hour. There is zero tolerance for engine failure. Because of its high-octane content, ethanol allows cars to attain and sustain great speeds. Because ethanol burns at a higher compression ratio, the engines resist deterioration. Because it has more energy content than methanol, cars can go further on a gallon of fuel, tanks can be designed smaller, and, because unlike methanol, ethanol burns with a flame, the racing is safer for drivers. Ethanol was the real winner of that race, and because most everyone in this room is an advocate for the increased production and use of fuel ethanol, and, indeed, because some in this room actually sponsored the fuel for this year’s Indy, you all can take some measure of satisfaction in Helio’s victory...more
Tom Buis, CEO of Growth Energy, testified before the House Committee on Agriculture on Low Carbon Fuel Standard proposals under consideration at both state and federal levels. His written statement, as prepared for delivery, is below. "
Mr. Chairman, Ranking Member, and Members of the Committee I appreciate the opportunity to testify here today on the various state and federal efforts to create a low carbon fuel standard. My name is Tom Buis, CEO of Growth Energy.
Growth Energy is a group committed to the promise of agriculture and growing America’s economy through cleaner, greener energy. Growth Energy members recognize America needs a new ethanol approach – Through smart policy reform and a proactive grassroots campaign, Growth Energy promotes reducing greenhouse gas emissions, expanding the use of ethanol in gasoline, decreasing our dependence on foreign oil, and creating American jobs at home. Our members do more than support a low carbon fuel standard; they have been working to perfect and produce low carbon fuels for decades. All of their work has paid off. Based on a recent study published in Yale’s Journal of Industrial Ecology, ethanol produced from corn in modern facilities reduces greenhouse gas emissions by more than 50 percent in comparison to gasoline...more
Friday, May 8, 2009, Senator Lugar Slams EPA Ruling, “At this time when we all seek to work with the President to improve the economy through new energy investment, it is unfathomable that the EPA would act to curtail a great boon to rural development,” U.S. Sen. Dick Lugar wrote today in a letter to Environmental Protection Agency Administrator Lisa Jackson.
Lugar said that the proposed EPA rule uniquely applying a life-cycle greenhouse gas emissions standard to ethanol was “highly speculative and imperfect” and “economic models simply do not accurately capture indirect emissions with an acceptable degree of certainty. . . I urge you to halt consideration of lifecycle greenhouse gas emissions due to lack of sufficient information, and work with Congress to find a workable solution.”
...more
Today, April 24, 2009, the California Air Resources Board voted to enact a standard that unfairly penalizes biofuels as compared to other fuels, including gasoline. "We're disappointed with the Board's vote," said General Wesley Clark, co-chairman of Growth Energy. "This was a poor decision, based on shaky science, not only for California, but for the nation. It is unfair to selectively single out the indirect effects of one fuel pathway while ignoring the significant indirect effects of all other fuels, including petroleum. Today's decision puts another road block in moving away from dependence on fossil fuels and stifles development of the emerging cellulosic industry."..more
The Environmental Protection Agency (EPA) announced on Thursday that they are seeking public comments regarding the waiver application to increase the amount of ethanol blends in gasoline, up from the current 10 percent maximum level, up to 15 percent. The 10 percent level has been in place since 1978, for conventional vehicles, not flex fuel vehicles or E85 capable vehicles. The comment period is open for 30 days. Thereafter, the EPA has 270 days to make a decision. The public comment period is in response to the March 6th, 2009, filing by Growth Energy and a number of other ethanol producers, waiver application to increases the maximum blend levels up to 15 percent.
To approve the higher ethanol blend request, the EPA only needs to determine that ethanol blends up to 15 percent will not affect the emission control systems in vehicles. General Wesley Clark, co Chairman of Growth Energy, said that Growth Energy made the request to raise the cap based on multiple sources of scientific data showing that E15 has no adverse effects on a car's performance, maintenance, or emissions controls. In fact, a study by the Department of Energy concluded that when E15 was compared to traditional gasoline, there were no significant changes in vehicle tailpipe emissions or vehicle drivability as ethanol content increased. General Clark also mentioned that the waiver request would not impact small engines since gas stations would still be able to sell lower blends of ethanol, including gasoline with zero ethanol (E0). he EPA has opened up Context of Growth Energy’s Waiver Application -
On March 6, 2009, Growth Energy and 54 ethanol manufacturers submitted a waiver application to the Administrator, pursuant to section 211(f)(4) of the Act, for ethanol-gasoline blends containing up to 15 percent ethanol by volume (“E15”).
Growth Energy maintains that under the renewable fuel program requirements of the Energy Independence and Security Act of 2007, which is now primarily satisfied by the use of ethanol in motor vehicle gasoline, there exists a “blend barrier” or “blendwall” by which motor vehicle gasoline in the U.S. essentially will become saturated with ethanol at the 10 volume percent level very soon. Growth Energy maintains that a necessary first step is to increase the allowable amount of ethanol in motor vehicle gasoline up to 15 percent (E15) in order to delay the blendwall. They also claim other ways of delaying the blendwall could include adding more stations offering E85 blends and bringing in the renewable fuel mandate specified in the Energy Independence and Security Act of 2007. For its part, Growth Energy claims that the “blendwall” will make those renewable fuel mandates unreachable and that there are substantial environmental benefits associated with higher ethanol blends...more
Several weeks ago, we reported “fourteen days and counting!!!” with respect to the Grain Stocks report and the Prospective Plantings report, both of which were released today, March 31, 2009.The March 1, 2009, inventory estimate report is quite important for both corn and soybeans, but probably more significant for corn, because for this time in the marketing year, the actual rate of soybean consumption is more predictable than corn, so no surprises are really expected for soybeans. We predicted that the Prospective Plantings report will certainly be a surprise to everyone, because right now it is very difficult to predict due to the volatility in the crude oil, ethanol, corn and soybean markets. In February 2009, the last official projection by the USDA, was approximately 86 million acres for corn plantings, and 77.0 million acres for soybeans. At the time, we thought that the USDA corn estimate was high, and that the soybean estimate was low. Corn planting for 2008 totaled 85.983 million acres. As of March 1, 2009, our 2009 projection for corn plantings was between 81.00 and 82.00 million acres, due to soybean favor and uncertainty in the ethanol market...more
The USDA will release two reports on March 31 that could have important implications for corn and soybean prices. These are the March 1 Grain Stocks report and the Prospective Plantings report. The March 1 inventory estimate should be more important for corn than for soybeans, since the rate of soybean consumption is well known, except for seed and residual use. The March 1 stocks estimate for soybeans, then, should be well anticipated. Any large deviation from the expected level would point to an error in the estimated size of the 2008 crop. For corn, the March 1 stocks estimate will reveal the rate of domestic consumption during the second quarter of the 2008-09 marketing year. Any large deviation from the expected level would mean that consumption occurred at a faster or slower rate than projected and/or the size of the 2008 crop was incorrectly estimated. The expected level of consumption during the quarter, however, is likely in a wide range.For soybeans, exports during the second quarter of the 2008-09 marketing year can be estimated from weekly USDA reports, although the official Census Bureau estimates are currently available only through December 2008. The January 2009 estimates should be released this week. Through December, cumulative Census Bureau export estimates exceeded, USDA estimates by 37 million bushels. Assuming that margin continued through February, second quarter exports would have totaled about 480 million bushels...more
CME Group - FREE Ethanol Webinars: Tools and Opportunities to Help You Mitigate Counterparty Risk
Wednesday, March 11 and March 18 at 3:00 p.m. Central Time (CT).
In the current environment marked by uncertainty, centrally-cleared derivatives help market participants eliminate
counterparty risk through the undisputed strength of CME Clearing. CME Group provides participants with even
more opportunity to manage risk in the growing ethanol marketplace with the now combined suite of NYMEX
and CBOT contracts – including the flexibility and ease of submitting OTC transactions for clearing on the
CME ClearPort system...more
Today, February 23, 2009, at the 14th annual National Ethanol Conference, Danish biotech pioneer Inbicon announced a series of technical and marketing initiatives for bringing commercial-scale cellulosic ethanolto North America. Under the banner of The New Ethanol, and in collaboration with the U.S.-based G-team, Inbicon is putting the finishing touches on new engineering and business model that incorporates its proprietary technology into a new pathway for converting biomass to ethanol. CEO Niels Henriksen says, “our new model of the Inbicon Biomass Refinery will allow North American grain-ethanol plants to add 20 million gallons a year of The New Ethanol to their output. Better yet, the new model generates its own bio-power, enough to not only produce The New Ethanol but also send a significant amount of green electricity and steam to the host plant, cutting the host’s energy costs dramatically.” The G-team’s Jeff Robert and Larry Johnson, responsible for the technical and business modeling, are now assessing successful grain-ethanol operations to determine which are most compatible with the Inbicon process. According Inbicon vice-president Michael Persson, in America for the conference, next steps will include detail engineering of two Inbicon Biomass Refineries, with groundbreaking to follow soon after. “It’s an exciting time to launch a new idea,” he says. “Thomas Corle and his G-team have been through this before. They helped build America’s highly successful first-generation ethanol business. And now they’re together again and working with us to build the next generation..more
General Wesley Clark Named as Growth Energy Co-Chairman Growth Energy named distinguished four-star retired General Wesley Clark as the organization's co-chairman today, February 5, 2009 at a press conference held in Washington, D.C. General Clark will share his vision for green-collar job creation in an energy independent America...more
Lallemand Ethanol Technology would like to announce the hiring of two new regional sales managers within our team.
Carl Gandolfo - Eastern Regional Sales Manager, Carl comes to Lallemand Ethanol Technology with over 30 years sales experience both in the Automotive Aftermarket and the Security Industry. For the last 13 years, Carl has been the National Sales Manager for Code Blue Corporation and ICOP Digital, Inc.
Educated at St. Louis University and Tarkio College, Carl has a Bachelor of Arts in Criminal Justice Administration and spent 10 years as a St. Louis County police officer prior to entering sales.
Carl has three honorable discharges, two from the US Navy and one from the US Air Force and is a Vietnam era veteran. Craig Ammann - Western Regional Sales Manager,
Craig comes to Lallemand Ethanol Technology with over 15 years of sales and marketing experience. He was most recently with a major biofuels project management and engineering company emphasizing the development of cellulose ethanol production and optimization of existing ethanol production facilities...more
CME Group, the world's largest and most diverse derivatives exchange, announced today that legacy Chicago Board of Trade (CBOT) ethanol swaps contracts will be available on CME ClearPort®, the electronic system that extends the benefits of centralized clearing to over-the-counter (OTC) products, scheduled to begin on January 25 for trade date January 26. The legacy CBOT calendar and basis ethanol swaps are the first of dozens of new cleared-only OTC contracts expected to be introduced on CME ClearPort this year that will benefit from the safety and security of CME Clearing.
"We are pleased to combine CME Clearing, which virtually eliminates the risk of counterparty credit defaults, with the popular ClearPort system to provide an efficient way for customers to transact bilateral trades," said Bob Ray, CME Group Managing Director International Sales and Equity and Commodity Products. "We look forward to increasing our CME ClearPort swaps offerings as we strive to provide more value-added services to our customers in the OTC, as well as in our listed, markets."
..more
It is with great sorrow we (Lallemand Ethanol Technology) announce that the ethanol and brewing world has lost one of its most significant leaders in recent history. Dave Kelsall, Director of Technical Service for Lallemand Ethanol Technology, died peacefully in his sleep on Dec. 23, 2008. Dave joined Lallemand Ethanol Technology following the company’s acquisition of the Alltech Alcohol Division in 2004. He will be remembered as an entrepreneurial figure in the ethanol industry; a passionate, optimistic person that influenced many in his field. In 2007, Dave was presented the High Octane Award at the International Fuel Ethanol Workshop and Expo – a people’s choice award for his unique commitment to the growth of the ethanol industry. Dave previously served as a Business Planning Manager for Robert Morton DG Limited in Burton-on-Trent England and developed a business plan for the international engineering company to design and manufacture breweries worldwide. From 1973-79, Dave was the Assistant Secretary General of the European Brewers Society and represented the Brewing Industry in Brussels. Dave was also Brewmaster for G Heileman Brewing Company of LaCrosse, Wis., from 1981-83. Dave received a special honors degree at London University (1965-68) in Chemistry. He was awarded his Masters degree in Malting and Brewing Science at the British School of Malting and Brewing in 1971. We will celebrate Dave’s life at a celebration dinner in LaCrosse, WI on January 31, 2009 from 4-8 p.m. at the LaCrosse Center. Details for the event are forthcoming, but please RSVP by contacting customerservice@ethanoltech.com with your name and contact information. Please go to the Lallemand Ethanol Technology web site for more informtion...more
Data released by the U.S. Department of Labor showed a 1.7 percent decline in the Consumer Price Index in November, which is the largest decrease since 1932. Despite steep decreases in things like energy and transporation, food prices continued to increase. In response, Growth Energy released the following statement:...more
Over the last three decades, the Brazilian sugarcane industry has been the target of heavy investments in science and technology from both the public and private sectors. Today, sugarcane is the basic feedstock not only for sugar, but for an impressive and growing variety of added value products, particularly the ethanol that fuels an increasing percentage of Brazilian automobiles and helps to reduce the dominant position held by fossil fuels in our society.
Now, sugarcane is about to embark on a new leap forward, this time to offer the world a dual source of clean and renewable energy. Reaching beyond sugar and ethanol, cane is already supplying electricity in Brazil, at a time when it is urgently needed to guarantee momentum for economic growth...more
The USDA’s December 11 reports of world supply and demand prospects were generally viewed as negative for corn prices. Corn prices, however, increased by more than $.40 following the release of those reports. For the current marketing year, the USDA increased the estimated size of the Chinese corn crop by nearly 160 million bushels. The projection of marketing year exports of Chinese corn was not increased, but some believe China will export more than the 20 million bushels currently projected by the USDA. Year ending stocks of corn outside of the U.S. are now expected to about equal the stocks on hand at the beginning of the year. For the U.S., the USDA lowered the projection of corn use for ethanol production by 300 million bushels, reflecting lower gasoline prices and tighter processing margins. Ethanol production may not exceed the mandated level in 2009. In addition, the forecast of marketing year exports was reduced by 100 million bushels as a result of the slow start to exports this year and the larger supplies of grain in the rest of the world. The reductions were only partly offset by an increase of 50 million bushels in projected feed and residual use of corn. That increase reflected prospects for reduced supplies of distillers’ grain from the ethanol industry. The first indication of the rate of feed and residual use will come from the estimate of December 1 inventories to be released on January 12, 2009...more
A decision by Brazil's trade promotion agency, APEXBrasil,
to sponsor the top ethanol-powered auto racing category, the Indy Racing League (IRL),
contributes to consolidate ethanol as a global commodity and is in the spirit of a Memorandum of
Understanding on biofuels signed between the governments of Brazil and the United States in
2007.
According to the president of the Brazilian Sugarcane Industry Association (UNICA), Marcos
Sawaya Jank, the deal strengthens a natural partnership between Brazil and the United States, the
world's top producers and consumers of ethanol. Together, the two countries account for more
than 75% of global ethanol production. "This will help ethanol to attain global energy
commodity status as well as fulfill its vital objectives: to help provide energy security and reduce
greenhouse gas emissions," he added...more
The OPEC Reference Basket continued to fall in October. The financial crisis dominated market sentiment as the economic slowdown dented petroleum demand growth. Uncertainty about bailout plans in the US while the turmoil spread worldwide signaled fears of a looming recession. Losses on the equity market, despite a move by central banks around the world to safeguard the financial system, highlighted the deteriorating economic sentiment. This was reflected in the equity markets which exhibited sharp volatility, mostly on the downside. In October, the Basket averaged $69.16/b for a drop of $27.69 or nearly 29%, the largest monthly drop ever recorded, to a level last seen in August 2007. The sharp downward trend continued in November, with the price at $49.09/b on 14 November. The forecast for the global economy in 2009 has been revised down 0.4 pp to 2.9% due to the rapidly worsening conditions in the real economy. The Euro-zone entered into technical recession in 3Q08 for the first time since the introduction of the single currency. The US economy contracted by 0.3% in 3Q08 and is expected to exhibit negative growth in the current quarter and possibly beyond. Unemployment in the US rose sharply to 6.5% with more than half a million jobs shed in the last two months alone. Central banks across the globe have moved to lower interest rates. Although money markets have eased, confidence in equity markets in October evaporated and share prices fell sharply. As spillover effects to emerging markets become stronger and commodity prices continue to fall, more countries are being affected. Attention is now turning to the need for fiscal stimulus measures to lessen the depth and reduce the duration of the economic turndown. Coordinated measures to address the crisis were considered in the Washington G-20 Summit. Following downward revisions, US growth in 2009 is now forecast at 0.3%, Euro-zone growth at 0.2% and Japanese growth is expected to turn negative...click here for the full PDF repoprt OPEC - November Oil Market Report
MGP Ingredients, Inc. continues to move forward with strategic initiatives to transform the company into a leading provider of value-added ingredients and world class alcohol products. Consistent with these initiatives, the company today announced plans to consolidate the production of wheat proteins and starches at its facility in Atchison, Kan., effective Nov. 12. This decision will result in the discontinuation of MGPI's protein and starch manufacturing operations in Pekin, Ill. The majority of the Pekin facility's proteins consist of commodity wheat gluten, which principally is sold for use in breads and other bakery products, as well as in certain pet food applications. Likewise, the bulk of starches produced at the Pekin facility generally are classified as commodity ingredients for a variety of prepared foods, as well as bakery products...more
Unfortunately, VeraSun will need to reject some corn contracts for delivery through Dec. 31, 2008 at our Janesville and Welcome, Minn., facilities due to the delayed startups. Other contracts may need to be rejected or renegotiated as we continue to work through them on an individual basis.
The Company has also temporarily ceased receiving corn and processing at certain facilities while we seek to secure additional financing. VeraSun appreciates the loyalty of our corn suppliers and their willingness to continue to work with us through the reorganization process.”...more
VeraSun Energy Corporation has terminated Danny C. Herron, the President and Chief Financial Officer. Bryan D. Meier, formerly the Vice Presidneet of Finance and Chief Accounting Officer will replace Danny Herron. Click on the following link for the Form 8K, dated November 14, 2008; VeraSun, 8K, November 14, 2008
Total corn use for 2008/09 is decreased from last month as projected exports are lowered 50 million bushels to 1.9 billion. Other uses of corn are unchanged. Lower exports increase ending stocks to 1.,124 billion bushels, up 36 million from last month. Higher projected ending stocks, larger foreign grain supplies, and continued declines in cash and futures prices are reducing prospects for 2008/09 prices received by producers. The projected farm price is lowered on both ends of the range to $4.00-$4.80 per bushel, compared with the record $4.20 in 2007/08...click on link below for the full report (PDF)
USDA - Feed Outlook, November 13, 2008
Biofuel brokerage firm BiofuelsConnect announced today its expansion into the Dried Distiller’s Grain markets.
The Florida-based brokerage firm has hired James Holzer, an agriculture commodity veteran, to create an Over-the-Counter market in DDGS.. "This new BiofuelsConnect desk will compliment the firm’s existing ethanol and biodiesel brokerage. The DDGS market has great price variation and is need of better price discovery. We are confident that our approach to brokerage in ethanol and bio-diesel will greatly aid this market as it matures and becomes more liquid.” ...more
ARCHER DANIELS MIDLAND REPORTS RECORD FIRST QUARTER RESULT
Company’s strong financial condition, global network enhance ability to act on opportunities
Archer Daniels Midland Company (NYSE: ADM) today announced record quarterly net earnings of
$ 1.05 billion for the quarter ended September 30, 2008, up 138 % from the period a year ago. Net sales increased 65 % to $ 21.16 billion.
“This record quarter again demonstrates the ability of our people to utilize our integrated global network and financial strength to capitalize on opportunities and further affirms our business model and strategy,” said Chairman of the Board and Chief Executive Officer Patricia Woertz. “Our strong balance sheet and credit rating provide us with the flexibility to access the most cost-efficient credit markets. Our market acumen coupled with this financial strength enables us to recognize and promptly act upon opportunities when they arise...more
VeraSun Energy Corporation, one of the nation’s largest ethanol producers, announced today that it had received commitments for up to $215 million in debtor in possession (DIP) financing from certain holders of VeraSun’s 9 7/8% senior secured notes due 2012 and groups of lenders led by AgStar Financial Services. At today's "first day" hearing, the U.S. Bankruptcy Court entered an interim order allowing VeraSun and its affiliates to borrow up to $40 million from these DIP facilities and authorized the use of cash collateral to enable VeraSun to operate its business. VeraSun is also in negotiations with its other lenders and expects to receive, when combined with commitments received from the 2012 noteholders and AgStar lenders, aggregate DIP financing commitments totaling $250 million...more
Corn Production Down Slightly from September. Soybean Production Up Slightly. Cotton Production Down 1 Percen.t Orange Production Down 10 Percent from Last Season. Corn production is forecast at 12.0 billion bushels, down slightly from the September forecast and 8 percent below 2007. Based on conditions as of October 1, yields are expected to average 153.9 bushels per acre, up 1.6 bushels from September and 2.8 bushels above last year. If realized, this will be the second highest yield on record, behind 2004, and production will be the second largest, behind last year. Yield forecasts are lower than last month across the Ohio and Tennessee Valleys and eastern Corn Belt as dry conditions during September continued to adversely affect the...more
BNSF Railway Co. today announced that it will begin delivering unit trains to Musket Corporation's newest ethanol storage terminal on November 1, 2008. With storage capacity of 10 million gallons, the Dallas/Fort Worth Musket Ethanol Terminal is one of the area's largest ethanol storage facilities and is designed to meet the daily needs of the Dallas/Fort Worth Metroplex. Located in the Mark IV industrial area in North Fort Worth, the facility maintains its own rail spur and is designed to completely unload a unit train of 95 cars every 24 hours. Tank cars are drained via an underground piping system and ethanol is pumped directly into the four storage tanks. The ethanol can then be pumped directly into trucks for local distribution...more
Governor Ritter, Mayor Hickenlooper, Federico Pena Will Tour Range Fuels, Monday, October 13, 2008...more
Corn and soybean prices have dropped sharply over the past two weeks, continuing the slide from the early summer peaks. The decline in December 2008 corn futures now exceeds $3.60 and the drop in November 2008 soybean futures is nearly $7.00. Some of the recent decline reflects the larger supplies revealed in the USDA’s September Grain Stocks report. That report revealed September 1, 2008 inventories of soybeans of 205 million bushels. That is about 55 million more than expected after the release of the Census Bureau estimate showing August 2008 crush about 15 million bushels lower than expected. The large year ending inventory resulted in a 91 million bushel increase in the estimated size of the 2007 crop. The increase reflected more acres and higher yields than earlier estimated. It has been clear since January 2008 that the size of the crop had been underestimated as “residual” use of soybeans revealed in the quarterly stocks estimate has been extremely small...more
DTN Webinar
WHAT WILL A NEW PRESIDENT MEAN FOR ETHANOL POLICY?
One candidate favors government support for ethanol. The other opposes it. But whoever wins, what happens to ethanol policy could deviate somewhat from the new president’s campaign platform.
October 22, 2008, 2:30pm Central Standard Time...more
CEO Neil Koehler will present at Oppenheimer's 3rd Annual Industrials Conference Oct. 2, 2008 at 10:15 AM Pacific/1:15 PM Eastern. Click Here For Webcast
USDA Crop Bulletin (September 30, 2008) Corn: Rain fell in the northeast Corn Belt, accumulating up to 3 inches for
the week in some areas. Elsewhere, conditions remained dry and favorable for
harvest activities. Temperatures across the region ranged from up to 75
degrees Fahrenheit in the southwestern areas down to 60 degrees elsewhere.
Ninety-six percent of the acreage reached or exceeded the dent stage by
week's end, 3 points behind last year and 2 points behind the 5-year average.
Meanwhile, 52 percent of the corn acreage developed to maturity by week's
end, 36 points behind last year and 27 points behind the 5-year average.
Acreage in the central Corn Belt was lagging between 30 and 40 points behind
in most States. Nine percent of the crop was harvested, 20 points behind
last year and 12 points behind the 5-year average. Major delays were evident
in Illinois and Kansas, where harvest was 28 points behind, and in Missouri,
where harvest was 43 points behind the 5-year average harvest pace.
Condition of the crop was rated 61 percent good to excellent, a 2-point
improvement from the previous week's rating...more
Click here for the Archer Daniels Midland 2008 Annual Report, PDF (5MB) ADM 2008 Annual Report
View Second Quarter 2008 Conference Call Slideshow
Colonial Pipeline today achieved the same flow-rates for gasoline deliveries as the pipeline managed before Hurricanes Gustav and Ike hit the Gulf Coast refining region earlier this month. After each of the hurricanes, Colonial’s pipeline quickly returned to full capability. However, supply shortages nonetheless occurred as a result of damage and shutdowns suffered by Louisiana and Texas oil refineries impacted by the hurricanes...more
In July 2008, after corn prices increased from the $6.00 per bushel range all the way up $8.00 due to extreme weather conditions in the Corn Belt, VeraSun exited their short financial positions with corn due to unacceptable margin exposure with their futures positions. Thereafter, they priced their corresponding physical purchase of corn at the then current market price, which has now proved to be significantly higher than today cash prices.
Additionally, based on the assumption that corn prices would continue to increase, VeraSun entered into accumulator contracts for corn which allowed them to purchase a set amount of corn at below the prevailing market prices at the time, but also required them to purchase the same volume of corn at one or more lower prices should market prices decline to or below those lower levels over the duration of the contract. Then, corn declined sharply, falling from around $8.00 to below $5.00 per bushel.
The conditions of the accumulator contract then required VeraSun to purchase additional corn at prices above the then prevailing market prices. The result of all of this, VeraSun projects that their Q3 2008 corn prices will average between $6.75 and $7.00 per bushel. Cash corn has been trading under $5.00 the last two weeks, although prices have rebounded slightly, improving to $5.17 today, September 23, 2008. In the VeraSun Form 8K (Report of Unscheduled Material Events or Corporate Changes), released last week, they quoted that as of August 29th, the prevailing prices for New York Harbor ethanol, the destination for a significant share of VeraSun’s ethanol shipments, averaged between 2.35 and $2.45 per gallon, and further stated that if prices remain at these levels, that they expect that their average ethanol selling price for Q3 2008 to be between $2.45 and $2.55 per gallon.
Furthermore, based on these assumptions, they expect to incur a net loss for Q3 12008 of between $63 million ($0.40 per share) and $103 million ($0.65 per share)...more
Corn and soybean prices continue to be influenced by a wide array of factors, resulting in a very unstable price pattern. Over the past week, December corn futures traded in a range of $.55. In the past seven trading sessions, November soybean futures traded in a range of about $1.20. On a daily basis, prices have been influenced by changes in the value of the U.S. dollar, changes in crude oil prices, export news, weather and production expectations, and developments in the financial markets. In general, a weakening of the U.S. dollar has been viewed as positive for export prospects and therefore for prices of corn and soybeans and a strengthening of the dollar has been viewed as negative for both. Lower crude oil prices are generally viewed as having a negative impact on prices due to the relationship to the price of biofuels and the profitability of biofuels production. Higher crude oil prices, then, are viewed as positive for corn and soybean prices..more
CME Group Inc. (NASDAQ: CME) today announced that it has completed its acquisition of NYMEX Holdings, Inc. (NYSE: NMX). The combined companies will provide customers around the world with access to all major benchmark asset classes, including interest rates, equity indexes, foreign exchange, energy, agricultural commodities and metals. CME Group Class A common stock will continue to trade on the NASDAQ under the ticker symbol "CME." NYMEX Holdings, Inc. common stock is being delisted and will no longer trade on the NYSE...more
Pacific Ethanol, Inc., the leading West Coast-based marketer and producer of ethanol, today announced its financial results for the quarter ended June 30, 2008.
For the three months ended June 30, 2008, the Company reported net sales of $198.0 million, an increase of $84.2 million, or 74%, compared to $113.8 million for the same period in 2007. This increase in net sales is primarily due to a substantial increase in sales volume, coupled with higher average sales prices. The Company’s sales volume increased by 22.9 million gallons, or 52%, to 66.8 million gallons, compared to 43.9 million gallons for the same period in 2007. The Company’s average sales price of ethanol increased by $0.23 per gallon, or 10%, to $2.55 per gallon compared to an average sales price of $2.32 per gallon in the same period in 2007...more
Archer Daniels Midland reports annual results - Segment operating profit hits new record of $ 3.4 billion.
Net earnings for the year ended June 30, 2008 decreased 17 % to $ 1.8 billion - $ 2.79 per share from $ 2.2 billion - $ 3.30 per share. Net earnings for the year ended June 30, 2007 include after-tax gains on asset sales of $ 665 million - $ 1.01 per share. Net sales and other operating income for the year ended June 30, 2008 increased 59 % to $ 69.8 billion from $ 44.0 billion last year due principally to higher average selling prices resulting primarily from increases in underlying commodity costs. “ADM’s 2008 results demonstrate the ability of our people to leverage our global assets against an exceptional set of opportunities” said Patricia Woertz, Chairman and CEO. “We had an outstanding year, highlighted by record segment operating profit. ADM met the needs of food, feed, fuel and industrial customers even as strong demand for crops and commodities challenged the global supply chain.”...more
POET, the world’s largest ethanol producer, praised the Environmental Protection Agency (EPA) for their objective ruling on the Renewable Fuel Standard (RFS). "For months, special interest groups seeking to defend the energy status quo have attempted to lay all of the blame for rising food costs at the feet of the ethanol industry," said Rob Skjonsberg, Vice President of Government Affairs for POET. "But the fact of the matter is that virtually every independent study has shown that ethanol’s impact on food prices is minimal while its impact on lowering gas prices is substantial. We applaud the EPA for their objective conclusion. A strong renewable energy policy will continue to bolster the U.S. economy and enhance our national security...more
The Industrial Ethanol Association (IEA) is pleased to announce the recent appointment of Pascale Rouhier as Secretary General. Pascale Rouhier has six years’ experience in international trade, including previously representing trade associations in agriculture and commodities as Secretary General. IEA’s members are synthetic ethanol producers INEOS, PetroSA Europe, and Sasol Solvents Germany. Its objective is to represent the interests of this sector to policymakers and other stakeholders in order to promote fair competition and maintain a healthy European ethanol market. Synthetic ethanol is produced from fossil fuels and is used in the industrial market, mainly for pharmaceuticals, cosmetics, inks and industrial chemical products...more
United States 2008/09 corn ending stocks are projected higher this month as higher carryin and reductions in food, seed, and industrial use more than offset lower production and higher feed and residual use. Harvested area is raised 100,000 acres based on the June 30 Acreage report. Production, however, is projected 20 million bushels lower at 11.715 billion as the projected yield is lowered 0.5 bushels per acre. As indicated in the Acreage report, heavy June rains and flooding reduced the share of harvested area in the higher- yielding Corn Belt states. Feed and residual use for 2008/09 is raised 50 million bushels based on higher expected pork and poultry production in the first half of the 2008/09 marketing year. Food, seed, and industrial use is lowered 65 million bushels, in line with changes to the 2007/08 marketing year. Ending stocks are projected 160 million bushels higher at 833 million. The 2008/09 marketing year average price received by producers is projected at $5.50 to $6.50 per bushel, up 20 cents on each end of the range. The tighter balance sheet for soybeans and higher soybean prices are expected to drive competition for 2009 acreage keeping cash and futures corn prices relatively strong, but below recent record levels. Ending stocks for 2007/08 are projected 165 million bushels higher with food, seed, and industrial use lowered 65 million bushels and feed and residual use lowered 100 million bushels. Ethanol corn use for 2007/08 is lowered 50 million bushels based on reported delays in plant startups and construction, as well as lower expected plant capacity utilization as indicated by the most recent ethanol production data...more
VeraSun Energy Corp. (NYSE: VSE), one of the nation’s largest ethanol producers, announced today that Gordon Ommen has resigned as the Company’s Chairman. Duane Gilliam will assume the role of Chairman of the Board of Directors. He joined the board in 2005 and currently serves as Chairman of the Compensation Committee of the Board of Directors. “I understand and respect Gordon’s decision to step down from the Board to focus on other business opportunities,” said Don Endres, VeraSun’s founder and chief executive officer. “He has helped both teams transition following the merger and provided valuable, thoughtful leadership to the Board. We wish him much success with his future ventures.”...more
Over the last three decades, the Brazilian sugarcane industry has been the target of heavy investments in science and technology from both the public and private sectors