Talking to agribusinessmen in Indiana, Joe Glauber, the leading economist for the USDA, told the group that he believes in the spring of 2012 more acreage across the country will be planted in corn.
He said most of that will be in the southern part of the United States.
“Just where soybean prices are relative to corn seems to favor corn planting. Last year there was a lot of competition for acres by cotton, but this year cotton has come down,” said Glauber.
Production in 2012 is only the beginning, according to the economist, who estimates about 93 million acres to be planted this year. Over the next month there will be a few production projections leading up to the report of planting intentions scheduled to be released in the latter part of March.
That report is based upon surveys of farmers.
As for the coming years, stockpiles are expected to grow, although it'll take time in Glauber's view because of the strong demand for corn.
For levels to increase, he sees a need to return to yields of about 160 bushels an acre. Poor weather has kept the yields weaker over the last several years.
Of course we need to eliminate the ethanol mandate as well, and allow people to make decisions as to what fuel they want in their vehicles. That has put enormous pressure on the corn supply.
The majority of corn demand over the next decade will come from China.
Showing posts with label Corn Ethanol. Show all posts
Showing posts with label Corn Ethanol. Show all posts
Thursday, February 2, 2012
Wednesday, February 1, 2012
Corn Concerns Push Ethanol Higher
Rising demand for corn exports from the United States pushed up the price of ethanol futures for the second day in a row, as worries over production costs pressured ethanol higher.
Assumptions the distilleries will be forced to compete for supply with foreign buyers, drove corn to a three-week high Wednesday.
On the Chicago Board of Trade, denatured ethanol for February delivery climbed 0.2 cent to $2.169 a gallon.
Corn futures for March delivery rose 3 cents, or 0.5 percent, to $6.42 a bushel in Chicago.
In the ethanol cash market, prices rose in New York 1.5 cents, or 0.7 percent, to $2.285; on the West Coast it was up 2 cents, or 0.9 percent, to $2.295; in Chicago it increased 2.5 cents, or 1.2 percent, to $2.18; and in the U.S. Gulf it jumped 2 cents, or 0.9 percent, to $2.265.
Assumptions the distilleries will be forced to compete for supply with foreign buyers, drove corn to a three-week high Wednesday.
On the Chicago Board of Trade, denatured ethanol for February delivery climbed 0.2 cent to $2.169 a gallon.
Corn futures for March delivery rose 3 cents, or 0.5 percent, to $6.42 a bushel in Chicago.
In the ethanol cash market, prices rose in New York 1.5 cents, or 0.7 percent, to $2.285; on the West Coast it was up 2 cents, or 0.9 percent, to $2.295; in Chicago it increased 2.5 cents, or 1.2 percent, to $2.18; and in the U.S. Gulf it jumped 2 cents, or 0.9 percent, to $2.265.
Thursday, February 24, 2011
Corn Supplies Tight on Record Demand
Corn and soybean supplies will remain tight this year even as increased plantings set the stage for record or near-record harvests, U.S. Department of Agriculture chief economist Joe Glauber said Feb. 24.
Exports and ethanol demand are expected to grow, keeping corn prices near historic highs and squeezing profit margins for beef, dairy and pork producers, Glauber said during an address at the USDA’s annual Outlook Forum in Arlington, Va.
“Unless this year’s weather is better than normal or plantings increase more than expected, stock levels for corn and soybeans should see only modest rebuilding in 2011-12,” Glauber said. “This will likely mean continued volatility in those markets.”
Corn futures in Chicago rallied 52 percent last year as the U.S. harvest produced weaker than expected results and prices continued higher in 2011, reaching a 31-month high near $7.25 a bushel earlier this week.
Rapidly escalating feed costs are an increasing concern for beef and pork producers, who in early 2010 returned to profitability after the 2008-09 recession contributed to deep losses.
Full Story
Exports and ethanol demand are expected to grow, keeping corn prices near historic highs and squeezing profit margins for beef, dairy and pork producers, Glauber said during an address at the USDA’s annual Outlook Forum in Arlington, Va.
“Unless this year’s weather is better than normal or plantings increase more than expected, stock levels for corn and soybeans should see only modest rebuilding in 2011-12,” Glauber said. “This will likely mean continued volatility in those markets.”
Corn futures in Chicago rallied 52 percent last year as the U.S. harvest produced weaker than expected results and prices continued higher in 2011, reaching a 31-month high near $7.25 a bushel earlier this week.
Rapidly escalating feed costs are an increasing concern for beef and pork producers, who in early 2010 returned to profitability after the 2008-09 recession contributed to deep losses.
Full Story
Vilsack Clueless on U.S. Corn, Ethanol
The United States "can do it all" -- turn more corn into ethanol without running short of food, Agriculture Secretary Tom Vilsack said on Thursday, as oil prices soared and the government raised its forecast of food price increases this year.
"There is no reason for us to take the foot off the gas," said Vilsack, referring to biofuels at a two-day Agriculture Department conference on the outlook for this year's crops. "We can do it all."
A record 5 billion bushels of corn will be used to make ethanol in the marketing year opening on Sept 1, up slightly from this year, said USDA. It also forecast food prices will rise 3.5 percent this year -- double the U.S. inflation rate.
Former president Bill Clinton, who spoke shortly after Vilsack, said there were stark trade-offs in using crops to make fuel. They affect the food supply in other nations as well as decisions around the world on where to grow crops.
"I think the best thing to say is we have to become energy independent but we don't want to do it at the cost of food riots," said Clinton. "The more biofuels we grow here, the less crops we have to put on the international market."
Full Story
"There is no reason for us to take the foot off the gas," said Vilsack, referring to biofuels at a two-day Agriculture Department conference on the outlook for this year's crops. "We can do it all."
A record 5 billion bushels of corn will be used to make ethanol in the marketing year opening on Sept 1, up slightly from this year, said USDA. It also forecast food prices will rise 3.5 percent this year -- double the U.S. inflation rate.
Former president Bill Clinton, who spoke shortly after Vilsack, said there were stark trade-offs in using crops to make fuel. They affect the food supply in other nations as well as decisions around the world on where to grow crops.
"I think the best thing to say is we have to become energy independent but we don't want to do it at the cost of food riots," said Clinton. "The more biofuels we grow here, the less crops we have to put on the international market."
Full Story
Wednesday, May 5, 2010
Archer Daniels Midland (NYSE:ADM) To Grow Through Acquisitions
According to Archer Daniels Midland (NYSE:ADM), they've maintained a strong balance sheet in order to be ready for opportunities for a merger or acquisition, their preferred means of growth in the near future.
ADM has been struggling, as their recent quarterly report shows, with sweeteners and starches falling in price, and ethanol and corn syrup expected to continue dropping in price as well.
This is why they are focusing on growth through acquisition, as organic growth looks like it won't be happening until demand turns around.
ADM has been struggling, as their recent quarterly report shows, with sweeteners and starches falling in price, and ethanol and corn syrup expected to continue dropping in price as well.
This is why they are focusing on growth through acquisition, as organic growth looks like it won't be happening until demand turns around.
Wednesday, March 10, 2010
Huge Corn Harvest Cuts Prices
Corn Inventory
Corn has suffered a similar fate as wheat, because exports are low and the harvest is high.
Corn exports are expected to fall by a huge 100 million bushels, as countries are successfully growing corn, and that is decreasing the demand globally, as it is with wheat.
The corn stockpile is projected to reach about 1.799 billion bushels after harvest, a major leap by 60 million bushels over the former estimate made by the USDA, which hasn't done a great job this year in accuracy, to say the least.
To put this into perspective, corn inventory has only surpassed 1.8 billion bushels four times in the last two decades.
Some are touting a resurgence in ethanol as a potential savior for corn in 2010, but that's very unlikely, as the economy is far from recovery, no matter what the official government line is.
Wheat is also expected to be cut back by about 10 percent in seeding next year for similar reasons as corn, but many of those farmers are expected to put that acreage into corn, putting more pressure on a larger harvest.
With corn exports continuing under pressure as other countries increasingly supply their own, and a slow economy not having the strength to push ethanol forward, I don't see a great year for corn in 2010 either.
Corn Inventory
Corn has suffered a similar fate as wheat, because exports are low and the harvest is high.
Corn exports are expected to fall by a huge 100 million bushels, as countries are successfully growing corn, and that is decreasing the demand globally, as it is with wheat.
The corn stockpile is projected to reach about 1.799 billion bushels after harvest, a major leap by 60 million bushels over the former estimate made by the USDA, which hasn't done a great job this year in accuracy, to say the least.
To put this into perspective, corn inventory has only surpassed 1.8 billion bushels four times in the last two decades.
Some are touting a resurgence in ethanol as a potential savior for corn in 2010, but that's very unlikely, as the economy is far from recovery, no matter what the official government line is.
Wheat is also expected to be cut back by about 10 percent in seeding next year for similar reasons as corn, but many of those farmers are expected to put that acreage into corn, putting more pressure on a larger harvest.
With corn exports continuing under pressure as other countries increasingly supply their own, and a slow economy not having the strength to push ethanol forward, I don't see a great year for corn in 2010 either.
Corn Inventory
Friday, July 17, 2009
Cash for Corn Cobs?
Cash for corn cobs a stupid idea
Using tax payer money for subsidizing farmers even more than the outrageous levels they're already being subsidized at is outrageous and criminal.
We don't need any more subsidies of corn, as the artificial market created through the nonsensical ethanol policy are detrimental and misguided, as wheat production suffers, and the poor around the world as well. That won't stop the outrage until food riots start again though, as prices surge above market levels in the socialist induced artificial market for corn and now corn cobs.
Cobs, the refuse left behind after harvest, are now plowed back into fields. But companies from California and South Dakota plan to start changing that by building two plants in Iowa, one to turn the material into ethanol and another to produce fertilizer.
Boyer already sells most of the corn from his farm to a traditional ethanol plant. Most ethanol in the U.S. is made from corn kernels.
But a $200 million plant being built by Sioux Falls, S.D.-based Poet Energy will make cellulosic ethanol, which comes from plant material such as cobs, wood chips and switchgrass. About two dozen cellulosic ethanol projects are being developed or built around the country, according to the Renewable Fuels Association.
The projects vary by region, with companies using whatever local crop is available. Louisiana and Florida companies, for instance, are using sugar cane, while one based in Oregon plans to convert poplar tress and wood chips into ethanol.
In Iowa, it's corn, and a switch from regular to cellulosic could mean more kernels are available for human food and livestock feed.
The push for new ways to produce cellulosic ethanol comes as many ethanol makers are struggling to turn a profit. They've had to drop prices to remain competitive as gas prices have fallen, but the cost of corn used to make ethanol has remained relatively high, said David Swenson, a researcher at Iowa State University.
Some of the largest producers have declared bankruptcy or been sold.
Poet spokesman Nathan Schock said the company hasn't yet figured out how much it will pay farmers, but it could be $30 to $60 per ton for corn stover, which includes cobs and some stalk. An average acre in Iowa yields about 1.5 tons of corn stover.
The company's payments to farmers could be supplemented by the federal government through the Biomass Crop Assistance Program.
Poet's plant in Emmetsburg, about 120 miles northwest of Des Moines, is expected to produce about 25 million gallons of ethanol per year when it opens in 2011. It could generate as much as $10 million per year in extra income for farmers.
Meanwhile, San Francisco-based SynGest, Inc., plans to build an $80 million facility in Menlo, about 40 miles west of Des Moines, that will be the first to make ammonia fertilizer from corn cobs.
The plant, expected to be completed by fall 2011, will process 130,000 tons of cobs per year into 50,000 tons of fertilizer, or enough for 100,000 acres of corn, SynGest CEO Jack Oswald said. Farmers would get about $50 per ton of cobs.
The company plans to market ammonia fertilizer to nearby farms as alternative to nitrogen fertilizer, which is made from oil. More than half the nation's supply of nitrogen fertilizer is imported, which drives up the price to farmers, Oswald said.
Poet expects $100 million in federal and state aid to build its plant, while SynGest has applied for $40 million in federal aid and additional state help.
Farmers said they'd like to trade their trash for cash, but most lack equipment to easily scoop up cobs. Prototypes for such machines are being built, but they could cost more than the cobs bring in. Boyer said a lot of questions remain.
Clark Bredahl, who raises corn, soybeans and cattle 320 acres near Greenfield, also said he'd need to figure out whether selling his cobs made economic sense.
This farmer is right. This is a bunch of ridiculous nonsense initiated by those attempting to fleece more taxpayers of their hard earned money in order to shore up a very stupid socialist corn and energy fiasco.
Cash for corn cobs a stupid idea
Using tax payer money for subsidizing farmers even more than the outrageous levels they're already being subsidized at is outrageous and criminal.
We don't need any more subsidies of corn, as the artificial market created through the nonsensical ethanol policy are detrimental and misguided, as wheat production suffers, and the poor around the world as well. That won't stop the outrage until food riots start again though, as prices surge above market levels in the socialist induced artificial market for corn and now corn cobs.
Cobs, the refuse left behind after harvest, are now plowed back into fields. But companies from California and South Dakota plan to start changing that by building two plants in Iowa, one to turn the material into ethanol and another to produce fertilizer.
Boyer already sells most of the corn from his farm to a traditional ethanol plant. Most ethanol in the U.S. is made from corn kernels.
But a $200 million plant being built by Sioux Falls, S.D.-based Poet Energy will make cellulosic ethanol, which comes from plant material such as cobs, wood chips and switchgrass. About two dozen cellulosic ethanol projects are being developed or built around the country, according to the Renewable Fuels Association.
The projects vary by region, with companies using whatever local crop is available. Louisiana and Florida companies, for instance, are using sugar cane, while one based in Oregon plans to convert poplar tress and wood chips into ethanol.
In Iowa, it's corn, and a switch from regular to cellulosic could mean more kernels are available for human food and livestock feed.
The push for new ways to produce cellulosic ethanol comes as many ethanol makers are struggling to turn a profit. They've had to drop prices to remain competitive as gas prices have fallen, but the cost of corn used to make ethanol has remained relatively high, said David Swenson, a researcher at Iowa State University.
Some of the largest producers have declared bankruptcy or been sold.
Poet spokesman Nathan Schock said the company hasn't yet figured out how much it will pay farmers, but it could be $30 to $60 per ton for corn stover, which includes cobs and some stalk. An average acre in Iowa yields about 1.5 tons of corn stover.
The company's payments to farmers could be supplemented by the federal government through the Biomass Crop Assistance Program.
Poet's plant in Emmetsburg, about 120 miles northwest of Des Moines, is expected to produce about 25 million gallons of ethanol per year when it opens in 2011. It could generate as much as $10 million per year in extra income for farmers.
Meanwhile, San Francisco-based SynGest, Inc., plans to build an $80 million facility in Menlo, about 40 miles west of Des Moines, that will be the first to make ammonia fertilizer from corn cobs.
The plant, expected to be completed by fall 2011, will process 130,000 tons of cobs per year into 50,000 tons of fertilizer, or enough for 100,000 acres of corn, SynGest CEO Jack Oswald said. Farmers would get about $50 per ton of cobs.
The company plans to market ammonia fertilizer to nearby farms as alternative to nitrogen fertilizer, which is made from oil. More than half the nation's supply of nitrogen fertilizer is imported, which drives up the price to farmers, Oswald said.
Poet expects $100 million in federal and state aid to build its plant, while SynGest has applied for $40 million in federal aid and additional state help.
Farmers said they'd like to trade their trash for cash, but most lack equipment to easily scoop up cobs. Prototypes for such machines are being built, but they could cost more than the cobs bring in. Boyer said a lot of questions remain.
Clark Bredahl, who raises corn, soybeans and cattle 320 acres near Greenfield, also said he'd need to figure out whether selling his cobs made economic sense.
This farmer is right. This is a bunch of ridiculous nonsense initiated by those attempting to fleece more taxpayers of their hard earned money in order to shore up a very stupid socialist corn and energy fiasco.
Cash for corn cobs a stupid idea
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