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Commodities: Corn prices tumble, ethanol margins improve

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By Jason Sagebiel, FCStone

July 31, 2014

Feedstocks Markets 

July was not a pretty month for the corn producer but end-users of corn benefited with tumbling prices. Nearby corn futures declined nearly 60 cents since July 1 to July 28. Prospects of a bigger yield continue to weigh on prices and the cash market

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New UC Davis study offers surprising insights on biofuels

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By University of California, Davis

July 31, 2014

A study recently released by the Institute of Transportation Studies at UC Davis examines how an incremental approach to supplement advanced innovation in biofuels can help California and the nation meet clean fuel and lower emission standards.

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Through late summer, the ethanol complex has remained extremely stable, unlike most commodity markets around it. Corn prices have fallen 55 cents per bushel while ethanol prices increased 2 cents per gallon.

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For more than three years, NASCAR has run on Sunoco Green E15. Drivers recently raced at the Brickyard in Indianapolis, where a historic milestone was set of 6 million miles of racing on higher blends of ethanol in NASCAR.

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I get to meet some really interesting people through my job at Ethanol Producer Magazine. A while ago, I received an email from a Ph.D. candidate that developed a free iPhone app for FFV drivers.

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China again has created new rules with regard to shipments that state all shipments must have a government stamped document stating the absence of MIR 162 corn. However, there aren't currently any agencies that can officially test for that.

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RFA to DOE: Update your E85 data

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By Renewable Fuels Association

July 28, 2014

The Renewable Fuels Association has pointed to the vast underrepresentation of E85 stations in the U.S. Department of Energy's Alternative Fuels Data Center database and implored DOE to accurately account for all stations selling E85.

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The European Union has filed its annual biofuels report with the USDA Foreign Agricultural Service's Global Agricultural Information Network, reporting that the European Commission aims to reach an agreement on future biofuel policy by October.

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With corn prices the lowest in years, the question arises whether farmers who invested in ethanol plants are finding it an effective hedge. Retired Iowa State University ag economist Don Hofstrand analyzed the question in a recent newsletter.

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Ethanol rolls into Sturgis

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By Renewable Fuels Association

July 24, 2014

The Renewable Fuels Association will partner with the Sturgis Buffalo Chip campground to host the 74th annual Sturgis Motorcycle Rally set to take place Aug. 4-10.

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On July 23, the U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration released proposed rulemaking that aims to improve the safety of rail transportation of flammable materials, particularly crude oil and ethanol.

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Ethanol produced in the United States has been the most economically competitive motor fuel in the world over the past four years and has played an important role in reducing consumer fuel costs, according to a new analysis.

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The U.S. Department of Energy has announced it will award up to $4.5 million in funding to expand the use of alternative fuels through the Clean Cities program, which works to decrease the use of petroleum in transportation.

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Legislation recently introduced in the U.S. House of Representatives would provide automakers an option to reduce their corporate average fuel economy (CAFE) standards by warranting at least half the vehicles they manufacture for alternative fuels.

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The agenda for the 2015 National Advanced Biofuels Conference & Expo has been released. The Oct. 13-14 event, located in Minneapolis, Minnesota, will focus on next-generation biofuels technology integration opportunities for existing biofuel plants.

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I can't help but think that, perhaps someday, the winning vehicle designs of the Advanced Vehicle Technology Competitions can be mass produced and sold to consumers like you and me.

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The Renewable Fuels Association will once again have a presence at Sturgis, writes Bob Dinneen of RFA. The rally, which includes ""Free Fuel Happy Hours," is a unique chance to reach out to half a million bikers.

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A Union of Concerned Scientists report estimates the U.S. agricultural industry could sustainably provide up to 155 million tons of crop residues and 60 million tons of manure annually by 2030 for use as feedstock to produce fuels and electricity.

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The Organization for Economic Co-operation and Development and the Food and Agricultural Organization of the United Nations predict that global biofuel consumption and production will increase significantly through 2023.

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Big Oil is living in an alternate reality, blaming the renewable fuels industry for damaging the environment and receiving federal tax subsidies, writes Tom Buis of Growth Energy. The real reason for the misinformation is the fight for market share.

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Beginning this fall, South Florida State College will offer a Bioenergy Education Program to provide students with a foundation of environmental sciences and renewable energy. The program will focus on preparing students for technician positions.

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Cummins Inc. announced the development of an E85 optimized engine and powertrain that reduces greenhouse gas emissions (GHG) by as much as 50 to 80 percent when compared with a baseline gasoline-powered medium-duty truck.

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UNICA, the Brazilian sugarcane industry association, has released a new harvest update, reporting that the south-central region of Brazil produced 1.89 billion liters (499.29 million gallons) of ethanol during the second half of June.

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Ron Lamberty of the American Coalition for Ethanol outlines some very large numbers from BP's Statistical Review of World Energy. The number 53, in particular, caught his attention because it's the number of years the oil on planet earth will last.

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As lignin supplies rise on the back of growing cellulosic feedstock utilization, commercialization opportunities of up to $242 billion are emerging in 13 select chemicals, says Lux Research.

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The International Trade Administration recently published a notice in the Federal Register announcing it is reestablishing the renewable energy and energy efficiency advisory committee and accepting nominations for its membership.

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Great growing conditions have the industry speculating on just how big the corn crop will be. USDA's July 11 supply/demand report pegs the 2014 corn crop at 13.86 billion bushels, 65 million bushels below last year's record.

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The National Grain and Feed Association has submitted an extensive proposal to the Surface Transportation Board, urging the STB to establish new rules and procedures that captive grain shippers could use to challenge unreasonable rail freight rates.

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The five Big Oil brands got an "F" in the Renewable Fuels Association's score card for their poor performance in offering E15 or E85. Among stations carrying other refiner-affiliated brands, only Speedway/SuperAmerica and Cenex received high marks.

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For critics, it's easy to make a knee jerk assumption that puts ethanol in a bad light. However, if they took the time to look deeper, they'd see there's much more to the story.

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