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Commodities: Gulf storms can impact natural gas market

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By Andy Huenefeld, U.S. Energy Services

September 29, 2015

Markets 

In general, hurricanes do not pose the same level of fundamental threat to the natural gas market as they once did. Still, a Gulf storm can still usher volatility into the futures market as traders react to the news and anticipate the impact.

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Aemetis Inc., an advanced renewable fuels and biochemicals company, announced the harvesting of 12- to 15- foot tall biomass sorghum grown in Central California. The company has a multi-year strategy to transition from grain to biomass feedstocks.

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The California Air Resources Board has re-adopted a Low Carbon Fuel Standard requiring a 10 percent reduction in the carbon intensity of transportation fuels by 2020.

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E85 would make the original RVO achievable, a new report from Babcock and Pouliot at Iowa State's CARD, shows. The economists analyze 3 years of retail data on E85 price and sales to estimate national demand, if E85 is priced right.

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The DDGS market continues to move back down to the lower end of the spectrum as a percentage of corn. Chinese buying, which moved the market up through the spring and early summer, has been on the sidelines for the past several months.

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Ethanol prices are trading at a 14-cent premium to RBOB gasoline prices. Recent premiums are at the highest levels seen since January 2015, and continue to focus on current and future market strength.

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Ethanol D6 RIN prices have stayed relatively stable over the summer while D4 biodiesel RINs prices plummeted, Illinois economists Scott Irwin and Darrel Good point out in their analysis of RINs markets.

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The majority of Nebraskans who responded to a poll are in favor of developing alternative sources of energy. Nearly 60 percent of poll respondents agreed or strongly agreed that more should be done to develop ethanol or biodiesel.

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Algenol will partner with South China's Fujian Zhongyuan New Energy Co. Ltd. to develop projects throughout Southern China, utilizing carbon emissions to create renewable fuels. The goal is to provide solutions for China's three biggest problems.

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Gevo Inc. has announced key initiatives and targets for 2016 following the settlement with Butamax in August, including increasing isobutanol production by seven to 10 times above 2016 production levels and decreasing production costs by 50 percent.

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Ethanol and biodiesel will continue to dominate gobal renewable fuel production with 96 percent of the global capacity, but novel fuels and feedstocks will be major drivers of growth.

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An Illinois Department of Agriculture-led tour begins Sept. 21, with stops at a variety of grain-related businesses around the state, including Marquis Energy LLC, a 140 MMgy ethanol plant in Hennepin, Illinois, and ADM's facility in Decatur.

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The RFA expressed disappointment with a proposal by the Oregon Department of Environmental Quality to include ILUC emissions when calculating the carbon intensity of biofuels regulated under the state's Clean Fuels Program.

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Farmers Co-op hosting grand opening of renewable fuels station

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By Iowa Renewable Fuels Association

September 18, 2015

Farmers Cooperative Co. announced a grand opening event will be held for a newly operational fueling station, located at 403 East South St. in Mount Ayr, Iowa. The new fueling station will offer a wide range of ethanol blends, including E15 and E85.

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Within the next two years, Algenol Biotech LLC will have an 18 MMgy algae-to-ethanol plant in central Florida. The company and Protec Fuel Management LLC have entered into an agreement to sell the ethanol, initially in that state.

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Priming the pump for higher blends

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By Ray Defenbaugh

September 14, 2015

Prime the pump, an effort to grow the ethanol market to accelerate the build-out of higher blend retail infrastructure, has had tremendous success, writes Ray Defenbaugh. This column appears in the October issue of EPM.

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Ethanol production in Germany grew slightly more than 5 percent to a total of 370,484 metric tons from production during the same period, last year, the Federation of German bioethanol fuel industry said.

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American Ethanol made a huge splash at the Lake of the Ozarks Shootout in central Missouri, the largest unsanctioned boat race in the Midwest. The winner, a 51-foot Mystic Powerboats catamaran, was named after its fuel source.

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Algenol and Protec Fuel have agreed to market and distribute ethanol from Algenol's Fort Myers, Florida., commercial demonstration module. The two will also offer Algenol's future production from a planned 18 MMgy facility for central Florida.

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USDA lowers projected national average corn yield to 167.5 bushels, lowering projected new crop and raising season-average farmgate corn prices by 10 cents.

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USDA Secretary Tom Vilsack's announcement 21 states will receive a total of $100 million in matching grants through the Biofuel Infrastructure Partnership was applauded by the ethanol industry.

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Leave light on for ethanol consumers

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By Ron Lamberty

September 11, 2015

Maybe people don't buy ethanol for the reasons we would like them to buy it, writes Ron Lamberty of ACE. But they buy it. This column appears in the October issue of EPM.

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The USDA announced that 21 states will receive grants to add infrastructure needed to supply more renewable fuel to America's drivers. The grants will support an estimated 5,000 pumps at over 1,400 fueling stations across the country.

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We have accomplished too much, and the future is too bright for the U.S. to abdicate its leadership on renewable fuels now, writes Bliss Baker of GRFA. This column appears in the October issue of EPM.

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U.S. ethanol exports recovered in July 2015, rising nearly 30 percent from the previous month to 77.2 million gallons, according to a Renewable Fuels Association analysis of the most recently available government data.

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The survey-based USDA Grain Crushings and Co-products report showed total corn consumption for industrial uses in July was 501 million bushels, up 2 percent from June.

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According to findings displayed a new report from IEA Bioenergy Task 39, New Zealand has the potential to supply all of its transportation fuel demand by 2030 from forests grown on lower productivity land.

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Commodities: USDA report shocked traders

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By Jason Sagebiel, FCStone

August 26, 2015

Corn is trying to make headwinds despite the USDA increasing its production outlook in August. In addition, outside influences will limit upside momentum.

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USGC reports progress in ethanol export promotion

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By U.S. Grains Council

August 26, 2015

The U.S. Grains Council expects this year's ethanol exports to reach 850 million gallons, valued at $1.9 billion. That's up from 768 million gallons last year.

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Commodities: Short-term price weakness hits natural gas market

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By Ben Straus, U.S. Energy Services

August 26, 2015

Seasonal pressure is coming to bear on the natural gas market. As summer is ending and winter is still a ways off, the natural gas market is positioned for short term price weakness.

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