Tag Archives: ethanol

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How concerned are you about the ethanol Industry? Do you think today’s move higher in the markets means we are going higher from here? Do you think the short-term lows are in the corn and soybean markets? How much lower do you think we can go? What are some surprises the could help the corn and soybean market go higher?

WASHINGTON, D.C. – This week, Rep. Cindy Axne (IA-03), a member of the House Agriculture Committee and the House Biofuels Caucus, joined a bipartisan letter to President Donald Trump urging his administration to forgo an appeal of the 10th Circuit Court’s decision that invalidated three Small Refinery Exemptions (SREs) under the Renewable Fuel Standard (RFS).

The letter, signed by more than 20 members of the House Biofuels Caucus, also criticized the Environmental Protection Agency’s (EPA) abuse of these exemptions.

“EPA’s rampant and inappropriate use of SREs in recent years has reduced demand for American biofuels and weakened the RFS. We ask that you direct EPA to respect the unanimous court decision by applying its ruling nationwide and end the agency’s destructive interpretation of the RFS,” the lawmakers wrote. “Farmers and biofuel producers are hurting as a result of decisions made by EPA and action by your office is needed to uphold the law in a fair and consistent manner.”

Biofuel producers and farmers are facing increasing pressure as margins have become unsustainable due to the ongoing oil price war between Russia and Saudi Arabia and plummeting demand due to the outbreak of COVID-19.

In January, the 10th Circuit Court handed the biofuels industry a major victory by ruling that EPA exceeded its authority by inappropriately granting new SREs from RFS blending requirements. The Administration has indicated that it is considering an appeal of the 10th Circuit’s decision. Biofuel and agriculture groups are urging the Administration to let the ruling stand, as nationwide application of this ruling would boost biofuel producers and commodity growers across the nation.

The text of the letter is below:

Dear Mr. President,

As members of the Congressional Biofuels Caucus, we write to express our concern with reports that the Environmental Protection Agency (EPA) is considering an appeal of the unanimous 10th Circuit Court decision in Renewable Fuels Association et al. v. EPA. The 10th Circuit Court held that EPA exceeded its authority by inappropriately granting refiners free-standing Small Refinery Exemptions (SREs) that exempted them from blending requirements under the Renewable Fuel Standard (RFS), rather than granting extensions of existing exemptions as intended by Congress.

EPA’s rampant and inappropriate use of SRE’s in recent years has reduced demand for American biofuels and weakened the RFS. We ask that you direct EPA to respect the unanimous court decision by applying its ruling nationwide and end the agency’s destructive interpretation of the RFS. Farmers and biofuel producers are hurting as a result of decisions made by EPA and action by your office is needed to uphold the law in a fair and consistent manner.

European demand for denatured ethanol recently doubled. Cargill told Reuters the spike comes as denatured ethanol is an ingredient in hand sanitizers, and demand for hand sanitizers has surged in recent weeks amid the global outbreak of the new coronavirus.

The virus has spread to more than 105 countries across the globe, with more than 100,000 cases reported and 3,800 deaths, globally. The U.S. Centers for Disease Control recommends people use hand sanitizers with a minimum of 60 percent alcohol to combat the virus. However, the best precaution, according to medical experts, is regular and thorough hand washing.

A study released in September of last year reported the denatured ethanol market was projected to grow 6.8 percent in revenue by 2024, reported before the outbreak. At the time, MarketWatch said demand was low with excess supply. Since the outbreak, hand sanitizers have been quickly selling out on store shelves and online, as the global population seeks to protect itself from the virus.

America’s top biofuel and farm advocates called on President Trump to immediately speak out against reports from within the administration that the White House may bow to a misinformation campaign spearheaded by Senator Ted Cruz. The senator has urged the president to join a handful of oil refineries seeking to overturn a unanimous court decision that would halt the Environmental Protection Agency’s (EPA) abuse of Small Refinery Exemptions (SREs) under the Renewable Fuel Standard (RFS). The following joint statement was issued by the National Corn Growers Association, the Renewable Fuels Association, the American Soybean Association, the National Farmers Union, Growth Energy, the American Coalition for Ethanol, the National Biodiesel Board, the Iowa Renewable Fuels Association, and Fuels America.


“The president needs to understand that Ted Cruz doesn’t care about this administration or families across the heartland who are counting on the White House to keep its promises. Just days ago, thousands of farmers rallied behind Secretary Perdue, who expressed his confidence that we had finally reached the end of a long and painful fight against EPA demand destruction. Tearing open that wound, against the advice of rural champions and the president’s own advisors, would be viewed as a stunning betrayal of America’s rural workers and farmers. We cannot stress enough how important this decision is to the future of the rural economy and to President Trump’s relationship with leaders and voters across the heartland. Ted Cruz comes back year after year with the same lies about refinery profits, disproven over and over by economists, the EPA, and even by Big Oil. We urge the president to stand up now against this misguided effort to torpedo the rural recovery.”


Days ago, more than 20 farm and biofuel groups, including the American Farm Bureau and the National Farmers Union, also sent this letter asking President Trump to reject “an appeal of the court decision, given the clarity, unanimity, and strength of the ruling.”


Kansas Corn is partnering with Renew Kansas to host the Kansas Corn-Fed Ethanol Seminar. Happening on March 4 at American Ag Credit, 4105 N. Ridge Rd., Wichita, this seminar will provide attendees with updates and learning opportunities covering a broad view of the ethanol industry.


“With nearly one-third of Kansas corn going directly into ethanol production,” said Kansas Corn Director of Industry Relations Stacy Mayo-Martinez. “It is important for those in the corn and agriculture industry to understand the market, the opportunities and the hurdles to better grasp how it affects Kansas corn prices. This is a unique learning opportunity and we are proud to partner with Renew Kansas.”


The seminar will explore ethanol export opportunities; barriers to increased ethanol use and connecting consumers with ethanol blends. A fuel retailer panel and an expert panel on economic impact and plant innovation will round out the seminar.


Kansas is a significant ethanol producing state producing about 500 million gallons of ethanol per year and represents a significant market for corn producers. About one-third of Kansas corn is used to make ethanol and DDGS feed, the co-product of ethanol production.


Those interested in the event can find more information and register online at https://kscorn.com/cornfedethanol/.


Kansas Corn represents corn farmers in Kansas, while Renew Kansas represents the state’s ethanol industry. For more information, visit kscorn.com and renewkansas.com


(Tampa, Fla.) – Global markets for U.S. grains are interconnected and affected by diverse drivers of demand including relationships with major grain users, ever-changing weather and trade policy.

U.S. Grains Council (USGC) members are meeting in Tampa, Fla., this week at the organization’s 17th International Marketing Conference and 60th Annual Membership Meeting to better understand how the Council’s network of global staff anticipate and respond to these factors in more than 50 countries around the world.

After a grueling year that included an ongoing trade war with China, unprecedented weather challenges and a flurry of trade deals with key customers, more than 350 attendees heard the latest developments and predictions from three experts on those topics to anticipate and plan for this year’s season: Ambassador Craig Allen, president of the U.S.-China Business Council; Eric Snodgrass, principal atmospheric scientist at Nutrien Ag Solutions; and Ken Levinson, executive director of the Washington International Trade Association.

“We want stable, long-term buyers in China,” said Ambassador Allen in his opening remarks about the ongoing and developing relationship with one of the United States’ biggest trading partners. “Nothing else is acceptable and we will work to that end.”

Snodgrass spoke to the power of Mother Nature’s long-term weather and climate issues, saying the Corn Belt is getting consistently wetter and farmers will need better tools to manage increased precipitation.

Levinson spoke to the dynamics driving agreements with major partners – China, Mexico, Canada and Japan – and the potential for new measures to gain new market access.

The morning culminated with selected USGC staff members from overseas offices reacting to how these drivers are interconnected and have impacts on trade in the markets in which they work.

Ryan LeGrand, USGC president and CEO, moderated the session of international directors including Alejandra Danielson-Castillo, director in South Asia; Tommy Hamamoto, director in Japan; Marri Tejada, director for the Western Hemisphere; and Manuel Sanchez, director for Southeast Asia.

From a tariff rate quota in Brazil to a new free trade agreement partner – Japan – and potential free trade agreement partner, Vietnam, each director spoke about positive developments in their own countries and regions in addition to how China, weather in the U.S. and trade agreement movements are impacting how they develop markets for U.S. grains, enable trade and improve lives in these places.

“Our expert country and regional directors and their staff members around the world tackle these very challenges every day to expand markets for U.S. grains,” said LeGrand. “They allow us to be successful for the corn, sorghum and barley sector producers who make up our membership.”

“It’s important for our members to hear from these experts as they will move into their Advisory Team meetings to formulate recommendations for moving trade forward in 2020,” said USGC Chairman Darren Armstrong, a farmer from North Carolina. “We appreciate the feedback and input, as well as the strategies provided by our directors scattered around the world working in our markets every day. They send back critical information to us on specific developments so the Council may remain nimble in addressing them.”

Loaded with information from both the morning’s expert speakers and the knowledge provided by the Council’s overseas directors, attendees headed into the first of three in-depth Advisory Team (A-Team) meetings, during which Council members help identify opportunities, set priorities and chart the course for the organization in the coming year.


In the next few days, attendees will continue A-Team meetings reviewing the Council’s Unified Export Strategy (UES) and will recognize members and USGC staff for their years of service before ending the week with a Board of Delegates meeting.