WASDE Report
Today’s WASDE report was a non-event as far as the corn balance sheet. However, there were some important surprises on the global side. Total global grain supplies were raised slightly to 2705.6 MMT, the second-largest on record.
Posted in Corn, DDGS, Production
RFA President Bob Dinneen Defends Ethanol on CNBC
Bob Dinneen, President and CEO of the Renewable Fuels Association (RFA), appeared in a joint interview today with Bob Darbelnet, President and CEO of the American Automobile Association (AAA), on CNBC's “Closing Bell”. Mr. Dinneen rebuked recent comments made by the auto club, which insisted that E15 damages vehicles.
The Myth of “Skyrocketing” Food Prices
Food groups have been running a scare campaign against ethanol and the RFS, preying on the emotions of American consumers. Data show that food prices are NOT increasing abnormally and the average household pays less of its income on food today than it did 10 years ago.
Posted in Renewable Fuel Standard
Response to National Council of Chain Restaurants RFS Guest Editorial
Rob Green, Executive Director of the National Council of Chain Restaurants, writes that following the enactment of the RFS the “cost of food commodities immediately began to rise.” If there were any truth to the claim, it would be mostly because of surging energy prices.
Posted in Renewable Fuel Standard
September Ethanol and Distillers Grains Exports
U.S. ethanol exports (denatured and undenatured, non-beverage) totaled 49.4 million gallons (mg) in September, down 2% from August and the lowest monthly total of the year. Canada was the leading destination in September, bringing in 26.1 mg. Meanwhile, the U.S. imported 105.7 mg of ethanol, 92.5 mg of which was destined for fuel use. Nearly all of the ethanol imports came from Brazil. Distillers grains exports for the month totaled 600,545 metric tons (mt), up 11% from August. China was again the leading destination.
Letter to the Editors - Response to the Wall Street Journal
The editorial "The Ethanol Election Delay" singles out the Obama administration and the EPA for not rushing to judgment on suspending the RFS, despite the fact that both the President and Governor Romney have pledged their support to renewable fuels.
Posted in Renewable Fuel Standard
Three Statewide Reports Prove: Ethanol’s an Economic Powerhouse
At a time when the Renewable Fuel Standard (RFS) is under attack, researchers in three states have weighed in with new reports that knock the starch out of ethanol’s critics.
Posted in Renewable Fuel Standard
August Ethanol Exports
U.S. ethanol exports in August fell to their lowest level in 22 months, according to government data released yesterday. August exports totaled 50.2 million gallons (mg), down 21% from July and the lowest since November 2010. Exports of denatured ethanol for fuel use totaled 33.2 mg, while undenatured ethanol for fuel use tallied 12.1 mg. Exports of distillers grains also dropped to their lowest volume of the year in August, with 541,639 metric tons (mt) being exported.
Second Response to EPRINC Report: “Ethanol’s Lost Promise”
An EPRINC report released on Sep. 14 entitled “Ethanol’s Lost Promise” advocates repealing the Renewable Fuel Standard (RFS). The paper suggests removing the RFS could reduce the oil refining sector’s ethanol consumption down to 6.1 billion gallons annually (compared to 12.5 billion gallons in 2011). EPRINC suggests the void left by smaller ethanol supplies could be filled with imported gasoline, increased gasoline yields at the expense of diesel/distillate production, expanding U.S. refining capacity, and other infeasible options. In response to RFA’s reaction to its study, EPRINC tried to defend it with yet more conflicting and misleading statements. Once again, RFA is stepping forward to refute fiction with fact.
Posted in Ethanol, Exports, Gas Prices, Fuel, Oil, Renewable Fuel Standard
Response To EPRINC Study: “Ethanol’s Lost Promise”
A report released this week by EPRINC, an oil industry-funded research group, suggests a multi-year suspension of the Renewable Fuel Standard (RFS) could reduce U.S. ethanol use by more than half. In this analysis, the RFA points out that in attempting to tear down the RFS, the EPRINC report actually underscores the importance of the program and highlights the lack of sensible or economic options available to refiners if ethanol use is severely curtailed.
Posted in Ethanol, Oil, Renewable Fuel Standard
RFA says Ethanol is Not to Blame for Diesel Fuel Corrosion Incidents
A report released today by Battelle, sponsored by the American Petroleum Institute (API), claims a recent rash of corrosion incidents in storage and handling equipment for Ultra Low Sulfur Diesel (ULSD) use stems from ethanol contamination. Under normal, everyday storage and handling conditions, ethanol should never come into contact with diesel fuel; ethanol is a gasoline additive.
A Revelation at the Wall Street Journal
Less than a month ago, the famously anti-ethanol editorial writers at the Wall Street Journal howled that the Renewable Fuel Standard (RFS) was exacerbating drought-related "corn shortages" and "driv[ing] food prices up in a way that punishes consumers around the world…" And reaching deep into their dead-and-buried-biofuel-myth grab bag, they pulled out this emotional beauty: "…biofuel mandates increase hunger and hunger-related diseases at home and abroad…" Yet, yesterday, inconspicuously stashed on the WSJ "Real Time Economics" blog, is a short post by Neil Shah entitled "Hard to Pass Food-Price Spikes on to Consumers." In it, Mr. Shah breaks down data from the U.S. Departments of Labor and Agriculture and concludes the impact of the drought on food prices will be "manageable" and "far from crippling for the average consumer."
Posted in Corn prices, Drought, Ethanol, Food, Renewable Fuel Standard
Beyond the Biofuel-bashing Editorials: Ethanol Really Reduces Prices at the Pump
Earlier this month, the Wall Street Journal published Letter to the Editor of mine, which was in response to "Ethanol vs the World." On the same day, the Journal published yet another sarcastic screed, “How Ethanol Causes Joblessness” that ridiculed what it claims was the methodology behind a study by academic economists that showed the increased use of domestic ethanol fuel lowered gas prices by a national average of $1.09 in 2011. Responding to this attack, I submitted another editorial, which was rejected by the Editorial Features Staff. Please read said editorial in this post.
Posted in Ethanol, Gas Prices, Fuel, Oil, Renewable Fuels, Renewable Fuel Standard, Research
Impacts of Waiving the Renewable Fuel Standard (RFS) on Household Spending on Food and Fuel
This summer, several governors have submitted letter to the EPA requesting a waiver of the RFS for 2012 and 2013. Analysis from the RFA shows that waiving the RFS requirements for 2013 would actually result in a net increase in annual household spending of approximately $24-$85 due to increased spending on gasoline. Thus, waiving the RFS in 2013 would do more harm to American consumers than if EPA allows the program to continue to function as designed.
Posted in Corn, Corn prices, Drought, Ethanol, EPA, Food, Renewable Fuel Standard
Ethanol exports flat in June; Imports from Brazil surge
U.S. exports of ethanol (denatured and undenatured, non-beverage) totaled 59 million gallons (mg) in June. Year-to-date exports stood at 426.4 mg, implying an annualized total of 852.9 mg; however, anecdotal information suggests ethanol exports dropped off precipitously in July.
USDA follow up: Putting today’s report in context
As expected, this morning's supply-demand estimates from USDA showed a big reduction in the size of the 2012 corn crop and average yield. Today's report estimates average yield at 123.4 bushels per acre (bpa), down nearly 23 bpa from USDA's July estimate and the lowest yield since 1995.
Drought, Ethanol and the RFS: Context is key
Tomorrow morning’s USDA World Agriculture Supply-Demand Estimates (WASDE) report may very well be the most highly anticipated report in the agency’s long and storied history. It will offer USDA’s first survey-based estimates of the 2012 corn crop and average corn yields; and the universal expectation is that the persisting hot, dry weather in the Corn Belt this summer has substantially reduced the size of the crop.
Letter to the Editor - Response to New York Times
A July 30th op-ed, "Corn for Food, Not Fuel" in the New York Times deserves an Olympic gold medal for misinformation claiming ethanol is more expensive than gasoline and that waiving the RFS will significantly lower corn prices. Ethanol is continuing to help consumers and the pump.
Posted in Corn prices, Ethanol, Renewable Fuel Standard
Letter to the Editor - Response to Chicago Tribune Editorial
In a Letter to the Editor of the Chicago Tribune in response to "Food and the Drought", I point out that yes, this years drought is undoubtedly painful, but we will not know the impact on corn supply until harvest. In the meantime, we must avoid speculation and allow the marketplace work.
Posted in Corn prices, Ethanol, Environment
Big Oil’s Stolen 35 Minutes
A recent article entitled "Clean Green Scam" highlighted the case of Rodney Hailey whose company sold approximately $9 million worth of fraudulent biodiesel credits to the oil industry. They were also fined by the EPA for not conducting proper due diligence to make sure the credits were legit. This cost Big Oil another $40 million. The article went on to say, "Refiners have been ripped off to the tune of $200 million so far by crooks and government fines..." due to the Renewable Fuels Standard. Wow, that is a big number - unless of course you put it into context.
Posted in Ethanol, Gas Prices, Oil
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