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Ethanol prices take wild ride in December

By Rick Kment, DTN

January 20, 2014

Feedstocks Markets 

Ethanol prices saw a wild price shift in December leading to additional uncertainty through the ethanol and corn markets. Lack of active support in the corn market has kept corn prices hovering between $4.15 to $4.30 per bushel in the futures market.

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Brentwood, Tenn.-based convenience store operator MAPCO Express Inc. has announced it will begin offering E15 to customers. According to the company, E15 will be included in new build and select mega store locations beginning in 2014.

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Germany-based CropEnergies AG has released financial results for the first three quarters of its current fiscal year, reporting a 5 percent increase in the production of ethanol. Production for the nine-month period reached 626,000 cubic meters.

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For all the media melodrama displayed at this time last year when the USDA released its tally on the drought-suppressed 2012 corn crop, there's been predictably little ado over last week's news that the 2013 crop is the largest on record.

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The U.S. Energy Information Administration has released the January issue of its Short-Term Energy Outlook, slightly increasing its forecast for 2014 ethanol production to an average of 913,000 barrels per day.

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RFA: U.S. ethanol export opportunities abound

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By Renewable Fuels Association

January 08, 2014

U.S. ethanol exports surged to 82.4 million gallons in November, with large volumes finding their way into new or emerging markets such as China and India, as well as the Philippines, Tunisia, Panama, and Mexico, according to government data.

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A new report published by Iowa State University's Center for Agricultural and Rural Development demonstrates that 2014 statutory requirements for the renewable fuels standard (RFS) could be met without additional infrastructure investments.

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An analysis from Informa Economics Inc. indicates renewable identification number (RIN) credits did not affect retail gasoline prices during 2013. Rather, crude oil prices were determined to be the primary driver of gasoline prices.

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Anyone working in, or on the edges of, cellulosic ethanol should take notice of the advanced biofuels panels taking place March 25-26 at the International Biomass Conference & Expo, in Orlando, Fla.

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Iowa produced 3.7 billion gallons of ethanol in 2013

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By Iowa Renewable Fuels Association

January 03, 2014

The Iowa Renewable Fuels Association has announced that Iowa's 42 ethanol plants produced 3.7 billion gallons during 2013, matching 2011 and 2012 production. Iowa continues to be the number one ethanol producing state.

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A recent FarmDocDaily post addresses renewable identification number (RIN) stocks and the implications of the U.S. EPA's proposed 2014 volume requirements for the renewable fuel standard, predicting 1.7 billion RINS will be carried over into 2014.

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Overcoming the E10 blend wall is priority No. 1 for the ethanol industry, and progress is being made on two fronts. The number of retail stations offering E15 is growing in step with the number of 2014 vehicles rolling into showrooms E15 approved.

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A recent report authored by two University of California, Davis researchers found that compliance costs for the low carbon fuel standard (LCFS) could increase rapidly in the future under certain circumstances.

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The U.S. Energy Information Administration has published the December issue of its Monthly Energy Review, reporting ethanol production, import and consumption data for the first nine months of the year.

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The U.S. EPA has published renewable identification number (RIN) generation data for November, reporting that both D3 cellulosic biofuel and D7 cellulosic diesel RINs were generated during the month.

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New Year, Renewed Challenges

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By Tom Buis, Growth Energy

December 25, 2013

The RFS always envisioned ethanol blends above 10 percent, even with decreasing gasoline consumption. But oil companies are doing everything they can to prevent E15 implementation. We must remain resilient and continue to battle for our industry.

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Consumer demand holding strong

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By Rick Kment, DTN

December 24, 2013

It is uncertain if ethanol futures will be able to hold the strong front month premium, as traders in the market scramble to secure short-term supplies. But the aggressive RBOB market has given traders confidence going into the holiday season.

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The U.S. Energy Information Administration has updated its state energy profiles and added new analytical narratives on the energy sectors of each of the 50 states, the District of Columbia and five U.S. territories.

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CoBank, a national cooperative bank serving rural American industries, has published a report analyzing the possible economic impacts of the U.S. EPA's proposed 2014 renewable fuel standard (RFS) volume requirements.

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The Brazil ethanol industry saw record supplies for the 2013/2014 crush season just being wrapped up, and got a welcome boost from auto executives who said ethanol-powered cars are more viable for reducing pollution than electric vehicles.

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The U.S. Energy Information Administration has published the early release of its Annual Energy Outlook 2014 (AEO2014), increasing its projections for biomass energy and other renewables. The analysis also predicts increased consumption of biofuels.

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Seeking protein value, domestic feeders are paying up to keep DDGS in their rations. Meanwhile, export markets remain brisk, container logistics continue to be a factor, and both RFS uncertainties and China's mounting regulatory pressures persist.

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Iowa's Biofuels Voice

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By Ron Kotrba

December 19, 2013

Monte Shaw, executive director of the Iowa Renewable Fuels Association, has seen the U.S. ethanol industry grow from less than 2 billion gallons in 2000 to well over 13 billion gallons today. His focus now: growing the market and protecting the RFS.

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The Board of China New Energy announced it has entered into a memorandum of understanding (MOU) to acquire BAPP Ethanol Holdings Ltd., a wholly owned subsidiary of Sino Distillery Group Ltd.

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Breaking Through the Blend Wall

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By Bob Dinneen

December 17, 2013

The ethanol industry's effort to overcome marketplace hurdles in 2014 will be aided by the largest corn crop in history, more auto companies providing E15 warranty coverage, and favorable economics for E85. Plus, the annual 'In/Out' list.

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What, if anything, will incentivize automakers to produce FFVs in the U.S. if and when corporate average fuel economy (CAFE) credits fade after model year 2016?

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The government of Spain recently filed a report on ethanol with the USDA Foreign Agricultural Service's Global Information Network. The report addresses Spanish policy, production, and supply and demand data.

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Some shale gas plays not currently economic

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By Ben Straus, U.S. Energy Services

December 12, 2013

The ability to access energy from shale will drive down the cost of production for American industries. In the case of natural gas, however, the story is always complicated below the surface, and the rate of production has slowed.

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Several European biofuel groups are speaking out following the European Council's failure to reach a political agreement on how to account for indirect land use change (ILUC) in biofuel policy on Dec. 12.

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