Inside March 2014

Features

Piling It On, Strategically

BY Susanne Retka SchillIn the fall of 2012, Green Plains Renewable Energy, sold 83 percent of its grain storage capacity. The move freed up capital, enabling the company to acquire more ethanol plants and make a big move toward outdoor corn storage. It's paying off. READ MORE

Fields of Dreams

BY Chris HansonWith improved crop science and farming practices, today’s award-winning corn yields may become tomorrow’s average. Increasing yields spurs innovation and new investment across the agriculture industry. In the end, 'everyone is a winner.' READ MORE

Obligation Outcomes

BY Tom BryanCurtailing ethanol blending this year may have a moderate effect on near-term corn prices, while broader, long-term consequences loom. Observers think the EPA will ultimately set the RVO above 13 billion gallons. How far above 13 no one knows. READ MORE

Production Price Up

BY Chris HansonCorn’s value has retreated, but the costs of fertilizer, seed, land and machinery remain high. Have inflated expenses reset the break even point for American growers? READ MORE

Distilled - Ethanol News & Trends

Commodities

Corn stocks rebuild, even as USDA projects smaller-than-expected supply, carryout

BY Jason SagebielThe total U.S. corn supply is pegged at 14.781 billion bushels and demand at 13.150 billion bushels, creating ending stocks of 1.631 billion. The 12.4 percent carryout-to-use ratio is a very comfortable level that will limit upside movement in corn. READ MORE

Depleted natural gas inventories may not recover until fall

BY Ben StrausNatural gas prices have pushed up above $4.50 for the prompt NYMEX contract. That will be sufficient to limit natural gas consumption for power generation, but the demand reduction from fuel switching may also not be enough to rebuild inventories. READ MORE

Early 2014 brings greater ethanol price stability

BY Rick Kment, DTN The biggest factor in ethanol markets will be projections of corn planting and building strength in the economy. Any economic strength seen through the first quarter is expected to result in increased gasoline demand, sparking higher ethanol usage. READ MORE

DDGS value relative to corn drops closer to 100%

BY Sean BroderickThe days of distillers grains being 140 percent the value of corn are behind us, at least near-term. With the Chinese New Year upon us, it is not clear how quickly we will get a resolution on China’s intentions. Whatever happens will impact 2014. READ MORE

Departments

Taking the Helm at the Distillers Grains Technology Council

BY Kurt A. Rosentrater The DGTC board of directors has now asked me to serve as the next CEO and executive director. It is an honor to carry on this long-standing legacy. Yes, much work has been done over the past several decades, but much more work must be done. READ MORE