CoBank: Cautious Optimism for Ethanol Exports

Cindy Zimmerman

A new report from CoBank’s Knowledge Exchange Division is cautiously optimistic about opportunities for US exports in grains, oilseeds and ethanol over the next three years.

“In the absence of major weather disruptions, global grain surpluses are expected to persist over the next three years. Acreage expansions and improvements to yields in competing export hubs will be headwinds for U.S. exports,” said Tanner Ehmke, manager of CoBank’s Knowledge Exchange Division. “The bright spot will be the continual growth in demand. As the global middle class grows, so will the opportunities for US exports.”

The report predicts solid growth in short term demand for corn will continue while the ethanol sector will struggle to grow demand “due to changing market dynamics in Brazil, and remaining challenges related to higher blend levels in the US.”

Ehmke says both Brazil and China are determined to reduce their dependence on U.S. ethanol. “The US will shift focus to emerging markets like Mexico, Thailand, India and Indonesia in the medium term,” said Ehmke.

corn, Ethanol, Ethanol News

Ethanol Industry Asks USTR to Suspend Brazil GSP Status

Cindy Zimmerman

The U.S. ethanol industry is asking U.S. Trade Representative Robert Lighthizer to suspend Brazil’s designated country status under the Generalized System of Preferences (GSP) due to “protectionist and market distorting actions in implementing a Tariff Rate Quota (TRQ) that affects imports of U.S. ethanol.”

A letter was sent to Lighthizer this week, signed by the Renewable Fuels Association (RFA), Growth Energy, and the US Grains Council.

“They’ve imposed a trade quota of only about 150 million gallons a year, when we’ve been shipping close to 500 million, and imposed a 20 percent tariff on every gallon over the quota,” said RFA president and CEO Bob Dinneen. “That’s particularly galling because Brazil is …the third largest beneficiary of GSP eligible trade at more than 2.2 billion dollars a year.”

Dinneen says that has driven a $2.76 billion dollar trade deficit for agricultural products and ethanol. “They obviously no longer qualify for GSP treatment,” said Dinneen.

The industry will submit a formal petition soon.

Dinneen explains more in this Ethanol Report – Ethanol Report on Brazil GSP status

Audio, Brazil, Ethanol, Ethanol News, Ethanol Report, Growth Energy, USGC

Corn Crop Increase Surprises

USDA surprised many with the crop production forecast out this month estimating a two percent increase from last month for corn.

Based on conditions as of November 1, yields are expected to average 175.4 bushels per acre, up 3.6 bushels from the October forecast and up 0.8 bushel from 2016. If realized, this will be the highest yield on record for the United States.

“It’s a major surprise for the trade to see a production increase this large for corn,” said Brian Hoops, Midwest Market Solutions, during the MGEX crop commentary call. “It really is hard to make sense that this yield number would be justified by crop ratings, which all summer were near 10 year low ratings.”

Listen to Hoops’ corn commentary here: Brian Hoops, Midwest Market Solutions

“In 2005, the year the RFS was enacted, corn yield stood at 147.9 bushels per acre. This year’s record of 175.4 bu/ac reflects an approximate 20% increase in yield in just over 10 years,” said Renewable Fuels Association President and CEO Bob Dinneen. “So, congratulations to America’s corn farmers who have worked so hard to achieve this record yield,” he added.

AgWired AgNewsWire, AgWired Energy, AgWired Precision, Audio, corn, RFA

Biodiesel Producers Testify at ITC Hearing

Cindy Zimmerman

The International Trade Commission held a public hearing in Washington yesterday to hear from biodiesel producers hurt by subsidized biodiesel imports from Argentina and Indonesia.

“We’ve got a group of members and unfortunately some biodiesel producers who had to close plants this year,” said Kaleb Little with the National Biodiesel Board during an interview at the National Association of Farm Broadcasting meeting in Kansas City this week.

The Commerce Department has issued a final determination in the case brought by the National Biodiesel Board (NBB) Fair Trade Coalition regarding subsidized biodiesel imports from Argentina and Indonesia and will update the cash deposit rates that importers of Argentinian and Indonesian biodiesel must pay on biodiesel imported from those countries. The cash deposit rates range from 71.45 to 72.28 percent for biodiesel from Argentina, and 34.45 to 64.73 percent for biodiesel from Indonesia.

Little says there are actually two cases moving forward together, anti-dumping and countervailing duties. “One says the home country is giving an unfair subsidy and the other is that they are dumping at below cost,” he said.

To be successful in securing relief, they had to file with both the Commerce Department and the ITC, since Commerce determines whether the imports are subsidized and/or dumped, while the ITC determines whether the domestic industry has been injured by reason of such unfairly traded imports.

Little talks about this issue, in addition to what the biodiesel industry is hoping to hear from the EPA later this month on the final volume obligations for next year under the RFS. Interview with Kaleb Little, NBB

2017 NAFB Convention Photos

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Audio, Biodiesel, NAFB, Trade

Secretary Sonny’s First Visit to NAFB

Secretary of Agriculture Sonny Perdue made his first visit to the National Association of Farm Broadcasting (NAFB) annual convention, where he made a stop in at Trade Talk and then spent nearly an hour talking with broadcasters.

The secretary’s first topic was the launch of USDA’s new resources to support veterans who might wish to pursue opportunities in agriculture, agribusiness, and rural America. “We’re very serious about supporting our veterans,” said Perdue. “They bring skill sets that we think work very well in agriculture.”

Asked when he might get a full court of under secretaries approved for USDA, Perdue pointed to his dress shirt and said, “I have a Free Bill Northey tee shirt under here.”

Perdue also commented on the bigger corn crop expected, trade issues and more. Secretary Sonny Perdue at NAFB

2017 NAFB Convention Photos

Coverage of the NAFB Convention is sponsored by
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AgWired Animal, AgWired Energy, AgWired Precision, Audio, NAFB, USDA

RFA Talks Ethanol with Farm Broadcasters

Cindy Zimmerman

The Renewable Fuels Association once again attended the annual meeting of the National Association of Farm Broadcasting (NAFB) to do interviews and support the media that helps spread the good news about agriculture and renewable fuels.

Some very good news right now is that ethanol is helping consumers save more money at the pump than ever before. “It’s probably the best value proposition we’ve ever seen in ethanol,” said RFA Vice President of Industry Relations Robert White. “E85 today is the lower cost fuel per mile.” On average nationwide, flex fuel vehicle drivers who fill up with 20 gallons of E85 are saving $14 per tank over drivers who fill up with E10.

The national price spread between regular unleaded and E85 is currently at 33% for the month of November and in many locations – including California, Ohio, Iowa, Kentucky, Indiana and Illinois – E85 is at least $1 per gallon cheaper than E10.

In this interview, White explains how the current price situation is also the result of stronger Renewable Identification Numbers (RINs) credit values, and he talks about the political “saber-rattling” going on in DC impacting the approval of critical USDA positions. Interview with Robert White, RFA

2017 NAFB Convention Photos

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Audio, E85, Ethanol, Ethanol News, NAFB, RFA

RFA Compiles FFV Models Brochure

Cindy Zimmerman

There are more than 22 million flex fuel vehicles (FFVs) on the road today, but many motorists may be unaware that they can use up to 85 percent ethanol blended fuel (E85). The Renewable Fuels Association (RFA) has developed a new brochure that compiles all of the FFV models available in the current model year (MY2018), as well as previous years going back as far as MY1998.

For MY2018, General Motors continues to lead the pack with 13 FFV model offerings, followed by Ford/Lincoln/Mercury with 11 FFV models available and FCA (Chrysler/Dodge/Jeep) with seven models. Additionally, automakers Audi and Mercedes-Benz each offer three, while Toyota offers two. All of the data used in the brochure was collected directly from the automakers.

“This new brochure aims to raise consumer awareness about what vehicles are capable of running on ethanol flex fuels,” said RFA Vice President of Industry Relations Robert White. “We want consumers to understand what fuel they can use in their vehicles, and how to find that fuel.”

Consumers can locate E85 stations to fuel their FFVs at E85prices.com, and also view what pricing experiences other users have reported.

E85, Ethanol, Ethanol News, Flex Fuel Vehicles, RFA

New TV Ad Recognizes President’s Support for Rural Communities

chuck zimmerman

President Trump’s support for biofuels is getting some recognition.

The nation’s top renewable fuel advocates have launched a new television ad recognizing President Trump’s steadfast support for rural communities, farmers, and workers in the biofuel sector. The ad responds directly to oil industry attacks on the president for his long-standing commitment to growth under the federal Renewable Fuel Standard (RFS).

“Refining executives seem to think that attacking the president will undermine his support for rural jobs and homegrown fuels, but he’s consistently sided with voters across the heartland,” said Emily Skor, CEO of Growth Energy, a member of the Fuels America coalition. “There are over 200 biorefineries across the nation, each serving as a key manufacturing hub, supporting jobs and creating vital markets for countless farmers. This industry is creating low-cost energy right here in America, and those communities deeply appreciate the president’s commitment to U.S. leadership on biofuels.”

The new ad, which begins airing November 6th on Fox News, features footage of President Trump’s advocacy for homegrown fuels, noting that he “kept his promise, protecting farm and manufacturing jobs.” The ad urges viewers to thank the president for standing up to refiners who have attacked the White House for its support of clean, affordable fuel options for American drivers.

AgWired Energy, biofuels, Energy, Ethanol, Growth Energy, Video

HERO BX Celebrates Anniversary with a Wrap

Cindy Zimmerman

Lake Erie Biofuels, dba HERO BX, celebrated one year of business at their blending terminal in North Hampton, New Hampshire by hosting an open house this week and unveiling three newly-branded trucks under the National Biodiesel Board (NBB) Vehicle Wrap Grant Program.

HERO BX sponsored D. F. Richard Energy (DFRE) for the program which was designed to match up to $10,000 of vehicle wraps or decals showcasing America’s Advanced Biofuel and DFRE was chosen as a winner.

In late 2016, HERO BX first launched the HERO BX Branded Bioheat® Program to meet a demand in the Seacoast residential and commercial heating oil markets. The HERO BX North Hampton blending and distribution terminal is the first of its kind in the region, enabling fuel oil dealers to procure biodiesel efficiently through customized blends from B2 to B80.

Biodiesel, Bioheat, NBB

DowDuPont Selling Cellulosic Ethanol Plant

Cindy Zimmerman

The “World’s Largest Cellulosic Ethanol Plant” is for sale.

Two years ago DuPont celebrated the opening of its 30 million gallons capacity plant in Nevada, Iowa that produced ethanol from corn stover. This week, the company -now merged with Dow- announced it is getting out of the biorefinery business.

As part of DowDuPont’s intent to create a leading Specialty Products Company, we are making a strategic shift in how we participate in the cellulosic biofuels market. While we still believe in the future of cellulosic biofuels we have concluded it is in our long-term interest to find a strategic buyer for our technology including the Nevada, IA biorefinery.

DowDuPont will continue to “participate in the overall biofuels market through specialty offerings including biofuel enzymes and engineered yeast solutions that improve yield and productivity for biofuel producers.” The merger of Dow and DuPont was finalized on August 31.

Cellulosic, Ethanol, Ethanol News