VeraSun Energy Corporation has terminated Danny C. Herron, the President and Chief Financial Officer. Bryan D. Meier, formerly the Vice Presidneet of Finance and Chief Accounting Officer will replace Danny Herron. Click on the following link for the Form 8K, dated November 14, 2008; VeraSun, 8K, November 14, 2008
Total corn use for 2008/09 is decreased from last month as projected exports are lowered 50 million bushels to 1.9 billion. Other uses of corn are unchanged. Lower exports increase ending stocks to 1.,124 billion bushels, up 36 million from last month. Higher projected ending stocks, larger foreign grain supplies, and continued declines in cash and futures prices are reducing prospects for 2008/09 prices received by producers. The projected farm price is lowered on both ends of the range to $4.00-$4.80 per bushel, compared with the record $4.20 in 2007/08...click on link below for the full report (PDF)
USDA - Feed Outlook, November 13, 2008
Biofuel brokerage firm BiofuelsConnect announced today its expansion into the Dried Distiller’s Grain markets.
The Florida-based brokerage firm has hired James Holzer, an agriculture commodity veteran, to create an Over-the-Counter market in DDGS.. "This new BiofuelsConnect desk will compliment the firm’s existing ethanol and biodiesel brokerage. The DDGS market has great price variation and is need of better price discovery. We are confident that our approach to brokerage in ethanol and bio-diesel will greatly aid this market as it matures and becomes more liquid.” ...more
ARCHER DANIELS MIDLAND REPORTS RECORD FIRST QUARTER RESULT
Company’s strong financial condition, global network enhance ability to act on opportunities
Archer Daniels Midland Company (NYSE: ADM) today announced record quarterly net earnings of
$ 1.05 billion for the quarter ended September 30, 2008, up 138 % from the period a year ago. Net sales increased 65 % to $ 21.16 billion.
“This record quarter again demonstrates the ability of our people to utilize our integrated global network and financial strength to capitalize on opportunities and further affirms our business model and strategy,” said Chairman of the Board and Chief Executive Officer Patricia Woertz. “Our strong balance sheet and credit rating provide us with the flexibility to access the most cost-efficient credit markets. Our market acumen coupled with this financial strength enables us to recognize and promptly act upon opportunities when they arise...more
VeraSun Energy Corporation, one of the nation’s largest ethanol producers, announced today that it had received commitments for up to $215 million in debtor in possession (DIP) financing from certain holders of VeraSun’s 9 7/8% senior secured notes due 2012 and groups of lenders led by AgStar Financial Services. At today's "first day" hearing, the U.S. Bankruptcy Court entered an interim order allowing VeraSun and its affiliates to borrow up to $40 million from these DIP facilities and authorized the use of cash collateral to enable VeraSun to operate its business. VeraSun is also in negotiations with its other lenders and expects to receive, when combined with commitments received from the 2012 noteholders and AgStar lenders, aggregate DIP financing commitments totaling $250 million...more
Corn Production Down Slightly from September. Soybean Production Up Slightly. Cotton Production Down 1 Percen.t Orange Production Down 10 Percent from Last Season. Corn production is forecast at 12.0 billion bushels, down slightly from the September forecast and 8 percent below 2007. Based on conditions as of October 1, yields are expected to average 153.9 bushels per acre, up 1.6 bushels from September and 2.8 bushels above last year. If realized, this will be the second highest yield on record, behind 2004, and production will be the second largest, behind last year. Yield forecasts are lower than last month across the Ohio and Tennessee Valleys and eastern Corn Belt as dry conditions during September continued to adversely affect the...more
BNSF Railway Co. today announced that it will begin delivering unit trains to Musket Corporation's newest ethanol storage terminal on November 1, 2008. With storage capacity of 10 million gallons, the Dallas/Fort Worth Musket Ethanol Terminal is one of the area's largest ethanol storage facilities and is designed to meet the daily needs of the Dallas/Fort Worth Metroplex. Located in the Mark IV industrial area in North Fort Worth, the facility maintains its own rail spur and is designed to completely unload a unit train of 95 cars every 24 hours. Tank cars are drained via an underground piping system and ethanol is pumped directly into the four storage tanks. The ethanol can then be pumped directly into trucks for local distribution...more
Governor Ritter, Mayor Hickenlooper, Federico Pena Will Tour Range Fuels, Monday, October 13, 2008...more
Corn and soybean prices have dropped sharply over the past two weeks, continuing the slide from the early summer peaks. The decline in December 2008 corn futures now exceeds $3.60 and the drop in November 2008 soybean futures is nearly $7.00. Some of the recent decline reflects the larger supplies revealed in the USDA’s September Grain Stocks report. That report revealed September 1, 2008 inventories of soybeans of 205 million bushels. That is about 55 million more than expected after the release of the Census Bureau estimate showing August 2008 crush about 15 million bushels lower than expected. The large year ending inventory resulted in a 91 million bushel increase in the estimated size of the 2007 crop. The increase reflected more acres and higher yields than earlier estimated. It has been clear since January 2008 that the size of the crop had been underestimated as “residual” use of soybeans revealed in the quarterly stocks estimate has been extremely small...more
DTN Webinar
WHAT WILL A NEW PRESIDENT MEAN FOR ETHANOL POLICY?
One candidate favors government support for ethanol. The other opposes it. But whoever wins, what happens to ethanol policy could deviate somewhat from the new president’s campaign platform.
October 22, 2008, 2:30pm Central Standard Time...more
CEO Neil Koehler will present at Oppenheimer's 3rd Annual Industrials Conference Oct. 2, 2008 at 10:15 AM Pacific/1:15 PM Eastern. Click Here For Webcast
USDA Crop Bulletin (September 30, 2008) Corn: Rain fell in the northeast Corn Belt, accumulating up to 3 inches for
the week in some areas. Elsewhere, conditions remained dry and favorable for
harvest activities. Temperatures across the region ranged from up to 75
degrees Fahrenheit in the southwestern areas down to 60 degrees elsewhere.
Ninety-six percent of the acreage reached or exceeded the dent stage by
week's end, 3 points behind last year and 2 points behind the 5-year average.
Meanwhile, 52 percent of the corn acreage developed to maturity by week's
end, 36 points behind last year and 27 points behind the 5-year average.
Acreage in the central Corn Belt was lagging between 30 and 40 points behind
in most States. Nine percent of the crop was harvested, 20 points behind
last year and 12 points behind the 5-year average. Major delays were evident
in Illinois and Kansas, where harvest was 28 points behind, and in Missouri,
where harvest was 43 points behind the 5-year average harvest pace.
Condition of the crop was rated 61 percent good to excellent, a 2-point
improvement from the previous week's rating...more
Click here for the Archer Daniels Midland 2008 Annual Report, PDF (5MB) ADM 2008 Annual Report
View Second Quarter 2008 Conference Call Slideshow
Colonial Pipeline today achieved the same flow-rates for gasoline deliveries as the pipeline managed before Hurricanes Gustav and Ike hit the Gulf Coast refining region earlier this month. After each of the hurricanes, Colonial’s pipeline quickly returned to full capability. However, supply shortages nonetheless occurred as a result of damage and shutdowns suffered by Louisiana and Texas oil refineries impacted by the hurricanes...more
In July 2008, after corn prices increased from the $6.00 per bushel range all the way up $8.00 due to extreme weather conditions in the Corn Belt, VeraSun exited their short financial positions with corn due to unacceptable margin exposure with their futures positions. Thereafter, they priced their corresponding physical purchase of corn at the then current market price, which has now proved to be significantly higher than today cash prices.
Additionally, based on the assumption that corn prices would continue to increase, VeraSun entered into accumulator contracts for corn which allowed them to purchase a set amount of corn at below the prevailing market prices at the time, but also required them to purchase the same volume of corn at one or more lower prices should market prices decline to or below those lower levels over the duration of the contract. Then, corn declined sharply, falling from around $8.00 to below $5.00 per bushel.
The conditions of the accumulator contract then required VeraSun to purchase additional corn at prices above the then prevailing market prices. The result of all of this, VeraSun projects that their Q3 2008 corn prices will average between $6.75 and $7.00 per bushel. Cash corn has been trading under $5.00 the last two weeks, although prices have rebounded slightly, improving to $5.17 today, September 23, 2008. In the VeraSun Form 8K (Report of Unscheduled Material Events or Corporate Changes), released last week, they quoted that as of August 29th, the prevailing prices for New York Harbor ethanol, the destination for a significant share of VeraSun’s ethanol shipments, averaged between 2.35 and $2.45 per gallon, and further stated that if prices remain at these levels, that they expect that their average ethanol selling price for Q3 2008 to be between $2.45 and $2.55 per gallon.
Furthermore, based on these assumptions, they expect to incur a net loss for Q3 12008 of between $63 million ($0.40 per share) and $103 million ($0.65 per share)...more
Corn and soybean prices continue to be influenced by a wide array of factors, resulting in a very unstable price pattern. Over the past week, December corn futures traded in a range of $.55. In the past seven trading sessions, November soybean futures traded in a range of about $1.20. On a daily basis, prices have been influenced by changes in the value of the U.S. dollar, changes in crude oil prices, export news, weather and production expectations, and developments in the financial markets. In general, a weakening of the U.S. dollar has been viewed as positive for export prospects and therefore for prices of corn and soybeans and a strengthening of the dollar has been viewed as negative for both. Lower crude oil prices are generally viewed as having a negative impact on prices due to the relationship to the price of biofuels and the profitability of biofuels production. Higher crude oil prices, then, are viewed as positive for corn and soybean prices..more
CME Group Inc. (NASDAQ: CME) today announced that it has completed its acquisition of NYMEX Holdings, Inc. (NYSE: NMX). The combined companies will provide customers around the world with access to all major benchmark asset classes, including interest rates, equity indexes, foreign exchange, energy, agricultural commodities and metals. CME Group Class A common stock will continue to trade on the NASDAQ under the ticker symbol "CME." NYMEX Holdings, Inc. common stock is being delisted and will no longer trade on the NYSE...more
Pacific Ethanol, Inc., the leading West Coast-based marketer and producer of ethanol, today announced its financial results for the quarter ended June 30, 2008.
For the three months ended June 30, 2008, the Company reported net sales of $198.0 million, an increase of $84.2 million, or 74%, compared to $113.8 million for the same period in 2007. This increase in net sales is primarily due to a substantial increase in sales volume, coupled with higher average sales prices. The Company’s sales volume increased by 22.9 million gallons, or 52%, to 66.8 million gallons, compared to 43.9 million gallons for the same period in 2007. The Company’s average sales price of ethanol increased by $0.23 per gallon, or 10%, to $2.55 per gallon compared to an average sales price of $2.32 per gallon in the same period in 2007...more
Archer Daniels Midland reports annual results - Segment operating profit hits new record of $ 3.4 billion.
Net earnings for the year ended June 30, 2008 decreased 17 % to $ 1.8 billion - $ 2.79 per share from $ 2.2 billion - $ 3.30 per share. Net earnings for the year ended June 30, 2007 include after-tax gains on asset sales of $ 665 million - $ 1.01 per share. Net sales and other operating income for the year ended June 30, 2008 increased 59 % to $ 69.8 billion from $ 44.0 billion last year due principally to higher average selling prices resulting primarily from increases in underlying commodity costs. “ADM’s 2008 results demonstrate the ability of our people to leverage our global assets against an exceptional set of opportunities” said Patricia Woertz, Chairman and CEO. “We had an outstanding year, highlighted by record segment operating profit. ADM met the needs of food, feed, fuel and industrial customers even as strong demand for crops and commodities challenged the global supply chain.”...more
POET, the world’s largest ethanol producer, praised the Environmental Protection Agency (EPA) for their objective ruling on the Renewable Fuel Standard (RFS). "For months, special interest groups seeking to defend the energy status quo have attempted to lay all of the blame for rising food costs at the feet of the ethanol industry," said Rob Skjonsberg, Vice President of Government Affairs for POET. "But the fact of the matter is that virtually every independent study has shown that ethanol’s impact on food prices is minimal while its impact on lowering gas prices is substantial. We applaud the EPA for their objective conclusion. A strong renewable energy policy will continue to bolster the U.S. economy and enhance our national security...more
The Industrial Ethanol Association (IEA) is pleased to announce the recent appointment of Pascale Rouhier as Secretary General. Pascale Rouhier has six years’ experience in international trade, including previously representing trade associations in agriculture and commodities as Secretary General. IEA’s members are synthetic ethanol producers INEOS, PetroSA Europe, and Sasol Solvents Germany. Its objective is to represent the interests of this sector to policymakers and other stakeholders in order to promote fair competition and maintain a healthy European ethanol market. Synthetic ethanol is produced from fossil fuels and is used in the industrial market, mainly for pharmaceuticals, cosmetics, inks and industrial chemical products...more
United States 2008/09 corn ending stocks are projected higher this month as higher carryin and reductions in food, seed, and industrial use more than offset lower production and higher feed and residual use. Harvested area is raised 100,000 acres based on the June 30 Acreage report. Production, however, is projected 20 million bushels lower at 11.715 billion as the projected yield is lowered 0.5 bushels per acre. As indicated in the Acreage report, heavy June rains and flooding reduced the share of harvested area in the higher- yielding Corn Belt states. Feed and residual use for 2008/09 is raised 50 million bushels based on higher expected pork and poultry production in the first half of the 2008/09 marketing year. Food, seed, and industrial use is lowered 65 million bushels, in line with changes to the 2007/08 marketing year. Ending stocks are projected 160 million bushels higher at 833 million. The 2008/09 marketing year average price received by producers is projected at $5.50 to $6.50 per bushel, up 20 cents on each end of the range. The tighter balance sheet for soybeans and higher soybean prices are expected to drive competition for 2009 acreage keeping cash and futures corn prices relatively strong, but below recent record levels. Ending stocks for 2007/08 are projected 165 million bushels higher with food, seed, and industrial use lowered 65 million bushels and feed and residual use lowered 100 million bushels. Ethanol corn use for 2007/08 is lowered 50 million bushels based on reported delays in plant startups and construction, as well as lower expected plant capacity utilization as indicated by the most recent ethanol production data...more
VeraSun Energy Corp. (NYSE: VSE), one of the nation’s largest ethanol producers, announced today that Gordon Ommen has resigned as the Company’s Chairman. Duane Gilliam will assume the role of Chairman of the Board of Directors. He joined the board in 2005 and currently serves as Chairman of the Compensation Committee of the Board of Directors. “I understand and respect Gordon’s decision to step down from the Board to focus on other business opportunities,” said Don Endres, VeraSun’s founder and chief executive officer. “He has helped both teams transition following the merger and provided valuable, thoughtful leadership to the Board. We wish him much success with his future ventures.”...more
USDA Weekly Weather and Crop Bulletin - Highlights: Growing conditions took a turn for the worse in the Midwest, despite a marked warming trend. Weekly rainfall totaled at least 4 inches, with isolated totals of 8 inches or more, from the middle Missouri Valley into southern Wisconsin and from central Illinois into the middle Ohio Valley. The torrential Midwestern rain caused widespread river and lowland flooding, halted planting and replanting operations, and washed out some fields. However, Midwestern crops that escaped flooding were aided by the season's first heat wave, which boosted weekly temperatures as much as 5 to 10 degrees F above normal in the southern and eastern Corn Belt. Hot weather also developed elsewhere across the southeastern half of the nation, but chilly conditions persisted across the northern Plains and much of the West...more
Cool weather plagued the Midwestern and Northeastern States, holding weekly temperatures 4 to 12 degrees F below normal and limiting summer crop emergence and development. In addition, showers hampered fieldwork across the southern half of the Corn Belt, but mostly dry weather favored corn and soybean planting in the Great Lakes region. Farther west, heavy rain pounded the northern and central Plains, with at least 4 inches reported in many locations from Montana to Kansas. Although rain generally aided the Plains' winter wheat and emerged summer crops, thunderstorms produced local damage due to large hail, high winds, and isolated tornadoes.
In fact, more than 100 tornadoes struck the central Plains on May 22-23, according to preliminary reports, followed by approximately 50 tornadoes from the southern High Plains into the upper Midwest on May 25. Meanwhile, warm weather promoted rapid crop development across the South, although showers- mainly from the Delta to the southern Atlantic Coast-caused some delays in cotton and peanut planting and other late-spring fieldwork. In southern Florida, however, rain aided wildfire containment efforts. Heat was especially notable in Texas, where temperatures mostly ranged from 4 to 8 degrees F above normal. In contrast, chilly weather returned to the West, accompanied by widespread rain and snow. Precipitation was particularly heavy in the northern Rockies, while showers across the interior Northwest aided winter grains and spring-sown crops. On May 22-23, snow was reported as far south as Arizona, where Flagstaff received 5 inches...more
Congress (Senate and House) passed the $290 billion farm bill Thursday.
President Bush had vetoed the legislation earlier in the week. However, a clerical error will keep the bill from going into effect.
The Senate voted 82-13 to override the President's veto, and the House voted 316-108 to override the veto. Both override votes exceeded the two-thirds majority required by the Constitution.
Adding drama with the passage is the fact that a portion of the bill is in legal limbo. Before the House override vote, they determined that the version sent to the White House last week was missing a part, and the President vetoed the bill without the missing section. The missing section, "Title III," pertains to authorized trade and food aid has raised questions regarding the veto and the override.
Key biofuels sections, which are now law, include:
Reauthorizes the federal procurement of biobased products program: The program requires federal agencies to purchase biobased products whenever possible. The program also requires USDA to develop guidelines for biobased products and issue a label for products that meet these guidelines. Provides up to $9 million in mandatory funding for the testing and labeling of biobased products.
Biorefinery Assistance: The bill provides $75 million for fiscal year
2009 and $245 million for fiscal year 2010 for loan guarantees to assist with the development of advanced biorefineries and biofuel production plants.
Biomass Research and Development: The conference agreement requires the Secretary of Agriculture and the Secretary of Energy to award competitive grants, contracts, and financial assistance to carry out research and development into biofuels and biobased products and technologies. There is $118 million in mandatory funding for this program.
Biomass Crop Assistance Program (BCAP): The BCAP is a new program that provides incentives for producers to establish and grow cellulosic energy crops.
CCC Bioenergy Program: Makes adjustments to the CCC Bioenergy Program to provide incentives for increased use of agriculture commodities (except
corn) and agriculture and forestry waste for the expanded production of advanced biofuels. Provides $300 in mandatory funding over the life of the bill.
Sugar for Ethanol and other Biofuel Producers: The bill requires the Secretary to purchase sugar for resale to ethanol or other biofuels producers if the sugar supply was in excess and would otherwise be forfeited to the Commodity Credit Corporation.
Cellulosic Biofuels Credit: The Conference Report creates a tax credit (up to $1.01 per gallon) for the production of cellulosic biofuels.
Cellulosic biofuels can be derived from numerous substances, including switchgrass, woodchips, and agricultural waste. The tax credit expires December 31, 2012. The provision is estimated to cost $403 million over fiscal years 2008-2018. This is a key piece of legislation that will promote, support and encourage cellulosic ethanol investment in the United States.
Reduction of the Ethanol Tax Credit: The Conference Report reduces the ethanol tax credit from 51 cents per gallon to 45 cents per gallon starting in January 2009. This reduction will be delayed if the Treasury Department determines that U.S. production and importation of ethanol totaled less than 7.5 billion gallons in 2008.
Ethanol Tariff: The Conference Report extends the $0.54 per gallon tariff on imported ethanol through December 31, 2010. This provision is estimated to increase revenues $70 million from fiscal year 2008-2018.
Caribbean Basin Initiative: The Conference Report extends the Caribbean Basin Initiative (CBI) through September 30, 2010. These trade preferences, which are currently set to expire in September 2008, apply to certain products, including textiles, apparel, and other goods from certain Caribbean nations. Included in the CBI is the ethanol. The trade programs known collectively as the Caribbean Basin Initiative (CBI) were established in 1984, and remain a vital element in the United States’
economic relations with its neighbors in Central America and the Caribbean. The program was established to provide the economic development and export diversification of the Caribbean Basin economies.
The initial legislative program was Caribbean Basin Economic Recovery Act (CBERA), and was thereafter substantially expanded in 2000, with United Sates and Caribbean Basin Trade Partnership Act (CBTPA). The CBI currently provides 27 beneficiary countries with duty-free access to the U.S. market for most goods, including ethanol. Basically, the Initiative allows up to 7% of the United States fuel ethanol demand to be imported from CBI Countries, duty free. There is not a limit on the total volume, just the percentage of United States usage. To qualify for duty free status, the ethanol must be dehydrated in the respective CBI Countries.
The current typical source of hydrous ethanol is Brazil, although it can be sourced from any region in the World.
USDA OFFICIALS BRIEFING WITH REPORTERS ON THE CASE FOR FOOD AND FUEL. We think the time has come for USDA to join in the public conversation about the relationship between food prices and biofuels. We want to offer our perspective on what is happening in the marketplace, to share our data, and the analysis of what is happening. That's why I am joined today by Deputy Secretary Chuck Conner; Joe Glauber, our chief economist; Tom Dorr under secretary for Rural Development; and Dr. Gale Buchanan, the under secretary for Research, Education and Economics...more
For the quarter ended March 31, 2008, Pacific Ethanol reported net sales of $161.5 million, an increase of $62.3 million, or 63%, compared to $99.2 million for the same period in 2007. This increase in net sales is primarily due to a substantial increase in sales volume, which was partially offset by lower average sales prices. The Company’s sales volume increased by 21.7 million gallons, or 58%, to 59.2 million gallons, compared to 37.5 million gallons for the same period in 2007. The Company’s average sales price of ethanol decreased by $0.04 per gallon, or 2%, to $2.30 per gallon compared to an average sales price of $2.34 per gallon in the first quarter of 2007...more
VeraSun Energy Corporation (NYSE: VSE), one of the nation's largest ethanol producers, today announced its financial results for the three months ended March 31, 2008. The Company increased revenues by 257% from the first quarter of 2007, to $516.5 million and generated earnings of $0.08 per diluted share. EBITDA for Q1 2008 increased to $32.3 million, or 6.3% of revenues, as compared to $3.8 million, or 2.6% of revenues for Q1 2007. "VeraSun continues to execute on its long-term growth strategy with significantly higher production, resulting in increased revenues and earnings," said VeraSun CEO Donald L. Endres. "Our team also successfully commissioned VeraSun's production facility at Bloomingburg, Ohio during the quarter, adding another 110 million gallons of production capacity...more
Pacific Ethanol, last week announced the delay of the release of their first quarter earnings by one week, and the filing of its regulatory report for the quarter with the Securities and Exchange Commission also will be delayed. The Pacific Ethanol earnings report, which was originally scheduled for Monday, May 12, will now be released on Monday, May 19, 2008. They did not give any reasons for the delay: Dial In Conferencing Details for the Pacific Ethanol Earnings Report
Start Time: 5/19/08, 7AM Pacific, 10AM Eastern
Dial In Number: 866-356-4279. International Dial In: 617-597-5394
Passcode: 64712247
The EPA just announced that the Administrator has received a request from the Governor of Texas, dated April 25, 2008, to waive a portion of the renewable fuel standard under section 211(o)(7) of the Clean Air Act. The Administrator is required by the Act to grant or deny this request within 90 days of receipt. They are providing notice that a waiver request has been received and are seeking public comment on whether to grant or deny it. Additional information available on the EPA website at http://www.epa.gov/otaq/renewablefuels/index.htm
The United States House passed the Food and Energy Security Act of 2007(H.R. 2419), commonly known as the Farm Bill, which is a $290 billion bill, with higher/increased subsidies for farmers and food stamps for the poor amid rising grocery prices while sprinkling in pet projects that lawmakers can take home to voters this election year. The 318-106 vote for the five-year bill gave supporters 28 more than they need to override a promised veto from President Bush. President Bush is on record stating that the bill is too expensive and generous to farmers, who are now enjoying record earnings. On Thursday, the United States Senate passed the bill as well, also with a veto proof margin of 81-15. The House passed the bill, 318-106, on Wednesday. To override a veto, each chamber must call a new vote and pass the bill by a two-thirds majority. The President has threatened to veto the measure, and he will get his chance as it is now on his desk but it appears that an override is eminent. President Bush feels that bill subsidizes multimillionaire farmers while Americans face higher food prices. The White House says the bill has $10 billion in hidden spending and rather than embrace reform, increases subsidy rates for wheat and soybeans...more or Click here for an Executive Summary of the entire bill
ADM reported Q3 financial results, and advised that net sales and other operating income increased 64 % to $ 18.7 billion, Q3 segment operating profit increased 54 % to $ 913 million from $ 593 million last year. for the quarter ended March 31, 2008. Selling prices increased due principally to sharp rises in commodity prices.
Oilseeds Processing operating profit increased as global demand for protein and oil improved.
Corn Processing operating profit decreased due principally to higher net corn costs.
Agricultural Services operating profit increased as highly volatile market conditions provided exceptional merchandising opportunities.
Other segment operating profit increased due to improved margins and increased financial services income. Net sales and other operating income increased 64 % to $ 18.7 billion for the quarter and 51 % or $ 16.2 billion for the nine months. Increased selling prices resulting primarily from sharp rises in commodity prices accounted for approximately 85 % of the increase while higher sales volumes, principally vegetable oil and meal, feed grains and wheat, accounted for the remaining 15 % increase...more
Resonant BioSciences, LLC and Ethanol Technology are proud to announce the introduction of PureMash™ technology as an antibiotic free alternative for the ethanol industry. PureMash™ is a unique chlorine dioxide generation-based system that allows superb microbial control without the use of antibiotics and offers an attractive alternative for those ethanol plants that want to achieve antibiotic residual free DDGS and enhanced fermentation performance...more
Corn producers reported intentions to plant 86.014 million acres of corn in 2008, 7.586 million fewer acres than planted last year and 1.37 million less than expected. The intentions to reduce corn acreage is widespread. Among the large producing states, acreage is expected to increase only in Texas. Intended acreage is down one million acres in Iowa, 800,000 in Indiana, and 600,000 in Illinois. If 86 million acres of corn are planted, acreage harvested for grain might be near 78.7 million. With an optimistic U.S. average yield of 155 bushels, production in 2008 would project to about 12.2 billion bushels. That is 755 million less than the projection of use during the current marketing year. Use is expected to remain at least that large in 2008-09...more
United States corn growers intend to plant 86.0 million acres of corn for all purposes in 2008, down 8 percent from last year when corn planted area was the highest since 1944. Expected acreage is down from last year in most States as favorable prices for other crops, high input costs for corn, and crop rotation considerations are motivating some farmers to plant fewer acres to corn. Despite the decrease, corn acreage is expected to remain at historically high levels as the corn price outlook remains strong due in part to the continued expansion in ethanol production. This was below most industry estimates. Corn on corn requires significantly more fertilizer and ammonia production cost is closely tied to the price of natural gas, and with $9.00 to $10.00 natural gas prices, anhydrous ammonia prices are literally through the roof. Natural gas accounts for approximately 80% of anhydrous ammonia cost, so even with high corn prices, a minor swing to soybeans on corn should not have been that much of a surprise...more
VeraSun Energy Corp. announced March 31, 2008, that it closed the merger with US BioEnergy Corp. after the transaction was approved by a majority vote of shareholders of both companies. The merger will be effective as of April 1, 2008. “We are pleased to complete the merger with US BioEnergy and we are well on our way to integrating our companies,” said VeraSun CEO Don Endres. “We look forward to realizing the synergies of our combined business as we expect to reach 16 biorefineries and an operating capacity of more than 1.6 billion gallons by the end of 2008. The size and scale that results from this merger will allow us to become more relevant to our customers in the petroleum industry and continue to position VeraSun as a premier platform company in the renewable fuels industry...more
NYMEX will launch a New York Harbor Ethanol Futures contract, on March 31, 2008. The contract will be physically delivered, traded on CME Globex and cleared on NYMEX Clearport (Exchange of futures for physical “EFP” available on NYMEX Clearport). The NYMEX New York Harbor Physical Ethanol Futures will be based on delivery at terminals in the harbor...more
The USDA Prospective Plantings report will be released on Monday, March 31, 2008. Expectations for planting intentions seem to be centering around 87 million acres for corn and 71 to 72 million acres for soybeans. That estimate compares to 2007 acreage of 93.6 million and 63.63 million, respectively. Intentions for spring wheat are expected to exceed last year’s seedings. The planting intentions estimate will provide a benchmark for anticipating actual plantings. Recent price changes that include much lower soybean futures and an extremely weak new crop soybean basis have shifted potential profitability significantly in favor of corn over soybeans in much of the midwest. At the same time, generally cool and very wet conditions in some areas may lead to anticipation of corn planting delays and a swing to more soybean acres. While many producers have locked in the planting decisions for most of their acreage, history reveals some significant differences between intentions and actual planted area. Factor in the uncertainty about growing season weather in the northern hemisphere and the ingredients for large price swings are in place...more
Vogelbusch GmbH has applied for a patent for a fermentation process that boosts the efficiency of bioethanol production from raw materials containing hemicellulose. A key feature of the process is an improved strain of microorganism, which delivers high yields in the production of bioethanol from materials that contain hemicellulose, such as wood waste. In the future, this strain will enable bioethanol to be commercially produced from alternative raw materials, thereby improving the CO2 balance of alternative fuels.
Vogelbusch GmbH, which is based in Vienna (Austria), today announced that it has applied for a patent for an efficient fermentation process for the high-yield extraction of bioethanol from materials containing hemicellulose.
Working in partnership with the Institute of Biotechnology and Biochemical Engineering at Graz University of Technology, the company has succeeded in extracting significantly more ethanol from this raw material than other processes...more
VeraSun Energy Corp. (NYSE: VSE), one of the nation's largest ethanol producers, today announced its financial results for the three months and year ended December 31, 2007.
"We are pleased to announce a solid quarter and year," said Don Endres, VeraSun's chairman and CEO. "Fiscal year 2007 included significant milestones for the company as we recorded more than $848 million of revenues in our fifth year of operations. We significantly increased our production capacity while improving operating efficiencies.
"Our operating performance and safety record have been exceptional," Endres added. "In the fourth quarter, we produced 142.1 million gallons and sold 134.4 million gallons of ethanol -- our highest level of output to date with an average production rate of over 105 percent of nameplate capacity for the year. During 2007, we strategically positioned the company to be one of the largest and low cost producers and we remain confident that a strong foundation has been laid for our continued leadership in the biofuels industry." Fourth Quarter 2007 Financial Highlights
Total revenues, which include revenue from the sale of ethanol, distillers grains and VE85(TM), increased by $165.9 million, or 113%, to $312.4 million for the three months ended December 31, 2007 from $146.5 million for the three months ended December 31, 2006. ...more
The 4th National 25x'25 Renewable Energy Summit, "Bringing the Vision to Life: Win-Win Solutions for America's Energy Future," will be held at the Embassy Suites Hotel in Omaha, Nebraska on March 11-13. Listed below are highlights of the event. Hear the latest from leading renewable energy experts from across the nation.
Some of the more than two dozen pre-eminent authorities on biofuels, biomass, wind, solar and other land-based renewable energy sources to address the summit include:
Dr. Steven Chu, Nobel laureate and Director of the Lawrence Berkeley National Laboratory
Dr. Lowell Catlett, a Regents Professor at New Mexico State University and renowned futurist
Charles Zimmerman, Wal-Mart Vice President who oversees sustainable facility development
Nebraska Gov. Dave Heinemann, an early endorser of 25x'25...more
RFA’s Annual Ethanol Industry Outlook Now Available - The Renewable Fuels Association today released its Ethanol Industry Outlook 2008 entitled “Changing the Climate.” The Outlook catalogs the important statistics for America’s domestic ethanol industry while providing the most recent, up-to-date facts about the production and use of fuel ethanol. “2007 was an historical year for ethanol in the U.S. and around the globe,” said RFA President Bob Dinneen. “From landmark energy legislation to unprecedented growth to the rapid development of new technologies, America’s ethanol industry is in the midst of a remarkable evolution. With all the misinformation being passed around about ethanol, the 2008 Ethanol Industry Outlook provides an authoritative source of facts and figures about America’s ethanol industry.”...more
Aventine Renewable Energy Holdings, Inc., a
leading producer, marketer and end-to-end rovider of clean renewable energy, today released its
results for the fourth quarter and full-year ended December 31, 2007.
Ron Miller, Aventine’s President and Chief Executive Officer said, “We continue to successfully
steer our way through a difficult commodity environment as both income and EBITDA turned
positive. While ethanol prices rose during the quarter, they did not increase enough to allow the average price received for ethanol in the fourth quarter to exceed the average for the third quarter.
We were able to offset, however, the lower average ethanol price with lower corn costs for the
quarter. Our fourth quarter corn costs averaged $3.66 per bushel, or $0.15 per bushel less than in
the third quarter. Our co-product returns for the fourth quarter increased to 45.3%, as prices for
germ, meal, DDGS and feed all increased...more
New G-team turns biofuels green into gold.Thomas Corle has a green vision. As the next new things in biofuels emerge, the former Delta-T marketer sees his new G-team racing around the many speed bumps that currently slow down world biofuels development. Corle plans to use his talents in marketing and communications, combined with his knowledge of the biofuels industry and world markets, “to make a difference to the planet.” Launching his new group of biofuels consultants gives him a chance to put it all together for clients “who want a faster track in turning biofuels green into gold.” Corle spent the past decade helping market Delta-T worldwide. Bibb Swain, founder of the Williamsburg, Virginia corporation, says, “Tom’s considerable contributions helped Delta-T to grow to 250 employees with $500 million in annual revenues for 2007.” Once just 32 employees and $2 million in revenues, Delta-T built an international reputation for technological innovation, winning over 150 ethanol and alcohol projects on five continents...more
The Andersons, Inc. and Marathon Oil Corporation jointly announced ethanol production has begun at their 110-million gallon ethanol plant located in Greenville, Ohio. The plant was constructed by The Andersons Marathon Ethanol LLC, a 50/50 joint venture between The Andersons Ethanol Investment LLC, a subsidiary of The Andersons, Inc., and Marathon Petroleum Company LLC, a wholly owned subsidiary of Marathon Oil Corporation. Construction on the facility began in November 2006.
"We are pleased to be opening the third ethanol plant in which we have an investment and for which we are providing management and other services," says Mike Anderson, President and CEO of The Andersons, Inc...more
The USDA's February report of U.S. and world crop supply and consumption prospects confirmed prospects for larger exports and smaller year-ending stocks of U.S. soybeans and wheat. Projections of use and stocks of U.S. corn during the current marketing year were unchanged. The new projections underscore the need for large crops in 2008.
Exports of U.S. wheat during the current marketing year are projected at a 12-year high of 1.2 billion bushels, 25 million larger than the January projection. Expected feed use was reduced by five million bushels, resulting in projected year-ending stocks of 272 million bushels, the smallest inventory in 33 years.
Exports of soybeans during the current marketing year are projected at 1.005 billion bushels, 10 million above the January forecast and only 113 million less than the record exports of last year. Exports for the year are expected to be down 10 percent, but shipments during the first five months of the marketing year are running only about 7 percent behind those of a year ago. In addition, unshipped sales as of January 31, 2008 were 48 million bushels (19 percent) larger than unshipped sales of a year ago. The projection of the domestic soybean crush was increased by five million bushels to a total of 1.835 billion, 1.6 percent larger than last year's record crush. Crush during the first four months of the year was 2.2 percent larger than during the same period last year. Year-ending stocks of U.S. soybeans are projected at only 160 million bushels, or 5.3 percent of projected consumption. As a percentage of use, projected stocks are at the second lowest level in 35 years...more
Jim Damask, Managing Director of BiofuelsConnect, a division of OceanConnect, announced that Mike Garcia and Mike Walker have joined BiofuelsConnect and will be located in the BiofuelsConnect’s Houston office. This new BiofuelsConnect office will support the expansion into the physical markets for Gulf Coast and West Coast ethanol and will complement BiofuelsConnect’s brokerage unit based in Heathrow, Florida which focuses on the Mid Continent and East Coast physical and financial markets. “Mike Garcia and Mike Walker bring great experience and a can-do attitude to our ethanol team. They are a great addition to our BiofuelsConnect team,” said Jim Damask...more
Khosla Ventures today announced the addition of Ford Tamer as operating partner. Tamer is charged with expanding the firm’s support of leading scientific work in clean technology, with a focus on breakthroughs related to mechanical and electrical efficiency, solar and IT. Khosla Ventures’ current portfolio includes investments in biofuels, solar photovoltaic and solar thermal, geothermal, battery, new materials, clean water and other environmentally friendly technologies. Tamer joins Khosla from Broadcom where he led the company’s Enterprise Networking Group...more
VeraSun Energy Corp. and US BioEnergy Corp. announced February 6, 2008, that the corporate offices of the combined company will relocate to Sioux Falls, S.D. The announcement came following a thorough analysis by the senior leadership of both companies. "We recognize the vital role that the Brookings, South Dakota community has provided in supporting the early stage development of these two leading biofuels companies. As we grow and plan for future success, we've evaluated the needs and various scenarios concerning corporate office location," said Don Endres, VeraSun Chairman and CEO. "The primary objectives in determining a final location included the ability to retain and recruit an expanded workforce, the overall cost of doing business, proximity to our growing fleet of ethanol production facilities, access to travel and quality of life for our employees. When we evaluated all of the criteria, Sioux Falls emerged as the best location to meet our business objectives."
Currently VeraSun's corporate offices are located in Brookings, S.D., while US BioEnergy has its corporate headquarters in St. Paul, Minn. The two companies announced plans to merge on Nov. 29, 2007, giving the combined company a potential production capacity of more than 1.6 billion gallons by the end of 2008...more
In a development that could dramatically advance the renewable fuels industry, cellulosic ethanol is now in production at the first small scale waste wood commercial facility operating in the U.S. Located just 1 mile South of Upton, Wyoming, the plant was engineered, constructed and is operated by KL Process Design Group (KL). This is the result of six years of development efforts between KL and the South Dakota School of Mines and Technology.
KL’s cellulosic ethanol plant is converting waste wood into a renewable fuel. “It is now possible to economically convert discarded wood into a clean burning, sustainable alternate motor fuel” said Randy Kramer, president of KL Process Design Group, a design firm that has been working in corn ethanol. “We’re proud of what this small company has accomplished, and believe that our design will be a cornerstone from which we can build our country’s renewable fuel infrastructure providing a better source of motor fuel, starting today.”
Ethanol Promotion and Information Council Launces "Fuel the Change"
Video Contest to Educate Consumers
About
America's Energy Options. Consumers can educate consumers about America’s energy options by participating in the “Fuel the Change” video contest sponsored by the Ethanol Promotion and Information Council (EPIC). Click here for CONTEST RULES Beginning Jan. 28, entrants can submit a :30 second video online. The producer of the winning video will receive a $10,000 cash prize and have the chance to have his or her commercial aired during the 2008 Indianapolis 500 on ABC. “Consumers have a great need for more information about ways they can help to reduce our nation’s dependence on foreign oil sources as well as reduce their impact on global climate change,” said Reece Nanfito, Senior Director of Marketing for EPIC...more
President Bush State of the Union Address: "...To build a future of energy security, we must trust in the creative genius of American researchers and entrepreneurs and empower them to pioneer a new generation of clean energy technology. Our security, our prosperity, and our environment all require reducing our dependence on oil. Last year, I asked you to pass legislation to reduce oil consumption over the next decade, and you responded. Together we should take the next steps: Let us fund new technologies that can generate coal power while capturing carbon emissions. Let us increase the use of renewable power and emissions-free nuclear power. Let us continue investing in advanced battery technology and renewable fuels to power the cars and trucks of the future. Let us create a new international clean technology fund, which will help developing nations like India and China make greater use of clean energy sources. And let us complete an international agreement that has the potential to slow, stop, and eventually reverse the growth of greenhouse gases....." Full Text
This agreement will be effective only if it includes commitments by every major economy and gives none a free ride. (Applause.) The United States is committed to strengthening our energy security and confronting global climate change. And the best way to meet these goals is for America to continue leading the way toward the development of cleaner and more energy-efficient technology. (Applause.)
U.S. Department of Energy (DOE) Secretary Samuel W. Bodman today announced that DOE will invest up to $114 million, over four years, (Fiscal Years 2007-2010) for four small-scale biorefinery projects to be located in Commerce City, Colorado; St. Joseph, Missouri; Boardman, Oregon; and Wisconsin Rapids, Wisconsin. Building on President Bush’s goal of making cellulosic ethanol cost-competitive by 2012, these ten-percent of commercial-scale biorefineries will use a wide variety of feedstocks and test novel conversion technologies to provide data necessary to bring online full-size, commercial-scale biorefineries. On average, commercial-scale biorefineries input 700 tons of feedstock per day, with an output of approximately 20-30 million gallons a year (MMGY); these small-scale facilities will input approximately 70 tons of feedstock per day, with an estimated 2.5 MMGY
On a daily basis, corn and soybean prices continue to be influenced by a large number of factors. These include the traditional fundamental factors of the rate of consumption and production prospects in various parts of the world. In addition, prices have been impacted by such factors as prospects for crude oil prices and U.S. and global economic prospects. The latter are often referred to as outside markets, but developments in these markets directly impact the potential demand for corn and soybeans...more
Renowned Economist John Urbanchuk to Unveil Economic Impact of Biofuels at Iowa Renewable Fuels Summit. Participants of the Second Annual Event will be the First to Hear Results. Participants from across the country will have the opportunity to hear economist John Urbanchuk discuss his updated economic impact study at the second annual Iowa Renewable Fuels Summit. The Iowa Renewable Fuels Association (IRFA) is hosting the event at the Polk County Convention Center from 1 p.m. to 5:30 p.m. on Jan. 31, 2008...more
Archer Daniels Midland Company (ADM), Bayer CropScience AG and Daimler AG plan to jointly explore the potential for a biodiesel industry based on Jatropha (Jatropha curcas L.). A respective Memorandum of Understanding was signed by the companies. Jatropha, a tropical plant from the Euphorbia family, is seen by the three cooperating partners as a promising alternative energy feedstock for the production of biodiesel. Biodiesel derived from Jatropha nut kernels has properties similar to those of biofuels obtained from oilseed rapes. It is also characterized by a positive CO2 balance and can thus contribute to protecting the climate.
