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Commodities: Future natural gas prices hang on inventory levels

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By Ben Straus, U.S. Energy Services

April 28, 2014

Markets 

Natural gas storage inventories ended the traditional heating season at 822 billion cubic feet (Bcf), nearly 1,000 Bcf below the five year average level of 1,814 Bcf.

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April has provided a wild and volatile ride for ethanol markets. Prices moved sharply lower due to supply concerns easing across the country.

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The Scoular Co. and Vireol Bio-Industries LLC are pleased to announce their exclusive partnership at the revitalized ethanol plant in Hopewell, Va. Scoular will procure all the corn, operate the grain facility, and market the distillers grain.

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The Canadian government has announced plans improve rail safety, including the phase out certain railcars used to carry ethanol and crude oil over a three year period. Some DOT-111 railcars are being removed from dangerous goods service immediately.

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The California Energy Commission conducted a workshop aimed at alternative financing options and strategies to support the development and implementation of transportation technologies which reduces greenhouse gas and criteria emissions.

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The month prior to Easter was pretty quiet and the weather is just now abating enough to have folks thinking about planting in the near future in the Midwest. The focus for DDGS prices is still on logistics and slow rail movement.

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Commodities: Corn market continues bullish run

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By Jason Sagebiel, FCStone

April 24, 2014

The corn market has been on a bullish run since the January report. The carryout has continued to decline, as export demand continues to increase.

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Renewable Fuel Association President and CEO Bob Dinneen gave a presentation at a rail safety forum hosted by the National Transportation Safety Board on April 23.

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The U.S. EPA has taken action to revise the 2013 cellulosic biofuel requirements under the renewable fuels standard (RFS) to 810,185 ethanol-equivalent gallons, the volume for which cellulosic RINs were generated in 2013.

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CFDC calls for ethanol to stand up as alternative fuel

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By Clean Fuels Development Coalition

April 16, 2014

Clean Fuels Development Coalition Executive Director Douglas Durante has called on ethanol supporters to not only defend the federal renewable fuel standard, but to move beyond it by capitalizing on the benefits of mid- and high-level ethanol blends.

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The European Commission recently announced it has adopted new rules on public support for renewable energy projects, including a move to market-based support. A U.K.-based trade association called the guidelines a "huge leap into the unknown."

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The recently competed May issue of Ethanol Producer Magazine has a corn oil theme. The stories cover the corn oil market, a new separations technology, extraction aids and co-located biodiesel production at ethanol plants.

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Naturally Driven to Innovate

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By Brian Jennings

April 14, 2014

Farmers have adopted new technologies at an unrivaled speed, prompted by the RFS, writes Brian Jennings. Ethanol production has helped the agricultural sector be more profitable, providing opportunities for adoption of new practices.

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The concept of co-locating biodiesel production at ethanol plants is finally taking shape.

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Iowa awards Fueling our Future funds to 2 retail stations

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By Gov. Terry Branstad’s office

April 14, 2014

Iowa Gov. Terry Branstad has announced the Oak Street Station in Inwood, Iowa, and Farmers Cooperative in Mount Ayr, Iowa, have been selected as recipients of funds through the Fueling Our Future pilot program.

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The Federal Trade Commission has published a proposed rule to amend its Rule for Automotive Fuel Ratings, Certification and Posting that would adopt and revise rating, certification and labeling requirements for ethanol-gasoline blends.

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Ceres Inc. released its second quarter financial results and an update on its efforts in Brazil during a webcast on April 10. The company said it has increased its planting of sorghum in Brazil, where it is pursuing ethanol and biomass power markets.

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China's fast-growing demand for oil, and its continued dependency on sugar-based ethanol, is opening up opportunities for advanced ethanol technologies, according to Lux Research.

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New Horizons

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By Bob Dinneen

April 10, 2014

The Renewable Fuels Association is working to expand ethanol export markets, says Bob Dinneen, president and CEO. For example, the group has led trips abroad to connect U.S. ethanol producers with new customers.

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Limiting ethanol content to 10 percent isn't a technical issue, writes BBI International's Mike Bryan. It's a political issue, plain and simple.

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Distillers corn oil, produced at the majority of ethanol plants today, is in high demand.

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BBI International's Tom Bryan introduces the June Ethanol Producer Magazine. The issue contains a look-back at past International Fuel Ethanol Workshop & Expos as well as several stories about corn oil, which is theme for the month.

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A group of Nebraska, Iowa, and Ohio corn farmers have returned from a multi-state trade mission to Brazil excited about the potential relationships and similarities of ethanol fuel.

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EIA: Rail congestion, cold weather raise ethanol spot prices

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By U.S. Energy Information Administration

April 03, 2014

Ethanol spot prices have increased steadily since early February. By late March, New York Harbor spot ethanol prices exceeded prices for RBOB (the petroleum component of gasoline) by more than $1 per gallon.

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The U.S. Energy Information Administration has published the March edition of its Monthly Energy Review, which features final 2013 data for ethanol production, imports and consumption. The report shows ethanol consumption continue to grow last year.

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The Global Renewable Fuels Alliance, in cooperation with F.O. Licht, has released its Global Annual Ethanol Production Forecast, which predicts global fuel ethanol production to surpass 90 billion liters (23.78 billion gallons) in 2014.

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Produced by BBI International, the agenda for the 30th annual International Fuel Ethanol Workshop & Expo includes more than 140 speakers and four highly informative track sessions.

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Commodities: Cold winter, other factors boost natural gas prices

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By Ben Straus, U.S. Energy Services

March 28, 2014

Winter 2013-'14 may be on its last legs, but the experience is still fresh in the minds of many natural gas consumers across the upper Midwest. The coldest winter in the past ten years lifted spot prices to unheard-of levels in the shale era.

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March was a strong month for the corn market with May futures trading to the $5.02 level. With that price action the producer was actively rewarding the market allowing basis levels to relax.

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A look back at the last month of DDGS supply and demand can be summarized with one word: Logistics. Railroads encountered a myriad of shipment problems causing issues to the east and west.

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