Commercial Cellulosic Ethanol On The Map In 2014

Jan 07, 2015

Cellulosic ethanol on a commercial scale has accounted for a small amount of Iowa’s total annual ethanol production, the state’s Renewable Fuels Association said last week.

Iowa, which produced 3.9 billion gallons of ethanol in 2014 – up from 3.7 billion gallons in 2013 – is the no. 1 ethanol producing state in the U.S.

Plants in Iowa in 2014 were the first to produce cellulosic ethanol on a commercial scale, with the first gallons coming from the Quad County Corn Processors ethanol plant in Galva, Iowa, in July.

A few months later, POET-DSM Advanced Biofuels, LLC, officially opened its commercial cellulosic ethanol plant in Emmetsburg, Iowa.

Iowa Renewable Fuels Association looked favorably at these advancements of Iowa’s plants, but noted concerns about federal ethanol policies.

“It was nice to see Iowa take a step forward both in terms of overall production and diversity of feedstocks,” IRFA Executive Director Monte Shaw commented in the group’s year-end announcement.

Shaw said key issues, like uncertainty with the Renewable Fuel Standard and consumer access to E15 have been roadblocks to improving the ethanol industry’s growth.

“Ethanol continues to be the world’s cheapest source of fuel octane and until U.S. energy policy is straightened out the growth opportunities for ethanol may be in exports,” he said.

Despite the RFS uncertainty, which is underscored by the U.S. EPA’s November decision to delay release of final 2014 volumes until later this year, a second Iowa plant is currently under construction and Abengoa has already opened its Kansas cellulosic plant.

Click here to see more...

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.