Corn Commentary

DDGS Supply Demand Picture

2014-export-exchangeHundreds of international buyers from dozens of countries heard about the supply-demand picture for the ethanol co-product distillers grains (DDGS) this week at the 2014 Export Exchange.

“We have ample supplies of distillers grains coming from the U.S. ethanol industry but the demand picture is somewhat murky,” says Renewable Fuels Association (RFA) Senior Vice President Geoff Cooper. “That murkiness has to do with trade barriers and interruptions in the global trade of distillers grains that we’re seeing.”

Patriot Renewable Fuels DDGsCooper says the U.S. is expected to produce 36-37 million metric tons of DDGS in the current marketing year, but one of the biggest trade disruptions in the market is being created by China’s demand that shipments of distillers grains must be certified to be free of the MIR162 biotech corn trait. “That kind of certification is not possible,” said Cooper. “So, we expect exports to China to be significantly curtailed or even halted until this situation is resolved.”

Last year, half of the U.S. distillers grains exports went to China, but Cooper says there are other countries increasing imports. “We are seeing continued growth of distillers grains exports to other parts of Asia outside of China,” he said, adding that Mexico is increasing imports and countries such as Egypt and Turkey are also growing markets. Interview with RFA Senior VP Geoff Cooper at 2014 Export Exchange

Corn Growers in the Sunbelt

ncga-sunbeltThe National Corn Growers Association had a presence last week at the Sunbelt Ag Expo in Moultrie, Georgia for the first time.

NCGA president Chip Bowling of Maryland visited with attendees at the event, including USDA Deputy Secretary Krysta Harden who grew up on a Georgia peanut farm, and got to see some crops he doesn’t normally see. “I got to see some cotton and a few peanuts,” Bowling told Randall Weiseman with Southeast AgNet during an interview at Sunbelt.

Bowling noted that corn acreage has been increasing in the southeast. “In the last couple years, when corn prices shot up there for awhile, we started seeing more corn acres in the south,” he said. “We are growing a fair amount now – about a billion and a half bushels – which is way up from what it used to be.”

Listen to Randall’s interview with Chip here: Southeast AgNet interview with NCGA president Chip Bowling

Learning About Conservation in the Everglades

Normally, the Conservation Technology and Information Center stays pretty close to the Midwest for its annual Conservation in Action tour, but this year they headed way south into the Florida Everglades to get a look at some very different types of crops.

ctic-14-ncgaOn the tour was CTIC board member and National Corn Growers Association Soil Health and Sustainability Manager Nick Goeser, who was amazed by the sugarcane planting and harvesting he saw. “It’s incredible,” he said. “It’s different (compared to corn) but the level of mechanization is very similar, the level of farm management, the precision involved – it’s amazing.”

Farmers in the Everglades Agricultural Area (EAA) have implemented some very successful best management practices to protect the important ecosystem that provides the water supply for much of the state. “A lot of the management issues are similar,” said Goeser. “We learned they had about a 55% reduction in phosphorus, which is huge.”

Goeser says what farmers have been able to accomplish in the EAA can serve as a conservation case study for farmers in other parts of the country.

2014 CTIC Conservation in Action Tour Photo Album

Listen to my interview with Nick here and watch some of the sugarcane harvest in the video below: Interview with Nick Goeser, NCGA

Grains Council Helps Exports Rebound

usgcWith a record corn crop being harvested, exports are more important than ever. The United States exported more than 11 percent of the U.S. corn supply to over 100 countries in the 2013/2014 marketing year, which U.S. Grains Council president and CEO Tom Sleight says is a nice recovery from lost market share after the drought of 2012.

“Now it’s time to really dig in and dig in hard … recoup our market share, recoup our sales,” said Sleight. “With an abundant, competitively priced crop, plus our reputation for quality and contract and deliveries, we’ve been able to get back where we needed to be.”

U.S. corn exports to Japan enjoyed a powerful rebound in the just completed marketing year, with USDA reporting exports and outstanding sales of 11.8 million metric tons (465 million bushels). “In Japan, we’ve had a 90 plus percent market share since April,” said Sleight.

usgc-sleightHeading into the 2014/2015 marketing year, the Council has more plans to develop new markets for U.S. corn. “We have nine offices around the world, spending about 40% of our resources in Asia, another 40% in the western hemisphere,” Sleight said. “The other 20% in the middle part of the world – the Middle East, north Africa, very key market for us.” With hostilities and Ebola to contend with in those areas, Sleight said they are being mindful of safety and security issues.

In this interview, Sleight also talks about the upcoming Export Exchange, global biotechnology education challenges, the situation in China, and the potential for current trade negotiations to boost grain exports. Interview with Tom Sleight, US Grains Council

Increasing DDGS Exports

2014-export-exchangeComing up October 20-22 in Seattle is the 2014 Export Exchange sponsored by the Renewable Fuels Association and the U-S Grains Council to bring international coarse grain buyers and U.S. suppliers together, with a particular focus on the ethanol co-product distillers grains for livestock feed. More than 180 international buyers and end-users are expected to meet and build relationships with more than 300 domestic suppliers in attendance at this event held every two years.

RFA president and CEO Bob Dinneen says the Export Exchange is more important than ever right now. “We export about 25% of our distiller’s feed and in the past more than half of that has gone to China,” said Dinneen. “China is making export of distiller’s feed to that country today a bit more challenging today with their concerns about GMO.”

Expressing his opinion that China’s concerns are primarily about price and politics, Dinneen said this year’s Export Exchange will include an educational session on biotechnology, “but more importantly we’ll have buyers from more than 33 other countries” to build markets beyond China.

Registration is still open for the event and USGC Industry Relations Director Lyndsey Erb-Sharkey talks about what is planned for this year’s Export Exchange in this interview. Interview with Lyndsey Erb-Sharkey

NCGA Busy at FPS

fps14-ncga1National Corn Growers Association officers were out in force at the 2014 Farm Progress Show in Boone, Iowa this week.

Right out of the gate on the first day I met up with NCGA chairwoman Pam Johnson of Iowa, First VP Chip Bowling of Maryland, and President Martin Barbre of Illinois. It was a soggy start to the show on day one, while day two was lovely, and day three looks to be a complete wash out.

gps14-ncga-chipChip stepped up to the podium in the media tent on day one to talk about our record corn crop in the fields this year. “We’re keeping a close eye on corn prices and are greatly concerned about efforts in Washington that may reduce or stifle demand for corn and raise the cost of production,” said Bowling, specifically noting the EPA’s proposal to lower volume obligations for ethanol under the Renewable Fuel Standard (RFS).

Chip Bowling, NCGA comments on record corn crop
Interview with Chip Bowling, NCGA

fps14-ncga-robNCGA soon-to-be Vice President Rob Elliott of Illinois sat down with us to talk about NCGA’s involvement in the American Ethanol NASCAR program which has had the popular racing platform running on 15% ethanol. “We’ve had about a four year program with Growth Energy and others to talk to 100 million NASCAR fans,” he said. “NASCAR in its three levels has run over six million miles (on E15) which is the same number of miles EPA drove to prove E15 to be a good fuel!”

Listen to our interview with Rob here: Interview with Rob Elliott, NCGA

2014 Farm Progress Show photo album

Taking Proactive Water Quality Steps

Following closely on the heels of the toxic algae bloom on Lake Erie that shut down water supplies in Toledo Ohio, Michigan’s livestock and crop producers recently announced proactive steps on water quality issues.

“Michigan agriculture is proactive and part of the solution when it comes to water quality issues in the Western Basin of Lake Erie and surrounding areas,” said Jim Byrum, president of the Michigan Agri-Business Association, who announced steps in a long-term effort to ensure Michigan’s continued leadership on water quality issues.

mi-cornJim Zook, executive director of the Michigan Corn Growers Association, says technology plays a major role in providing solutions to water issues and Michigan is a leader in the use of precision agriculture technology, which helps producers optimize fertilizer use.

“Even just a few years ago, the technology just wasn’t where it is today,” said Zook. “Growers didn’t have the precision agriculture tools that are in use across the state to pinpoint fertilizer applications. Michigan’s corn producers have embraced new technology, and they’re using it to be part of the solution on water quality issues.”

Listen to Byrum, Zook and other Michigan ag leaders talk about proactive steps they are taking on water quality issues: Michigan Agriculture Groups Discuss Water Quality

Motorcyclists Get Ethanol Education

sturgis-14-rfaConcluding the sixth year of sponsorship at the Sturgis Motorcycle Rally and the Buffalo Chip Campground, Robert White with the Renewable Fuels Association (RFA) believes they are making some real headway in getting the true story about ethanol to motorcycle riders.

“The education to the riders is actually taking on a new life,” said White. “We’re seeing riders talking to riders.”

White talks about a rider who pulled up for the Free Fuel Happy Hours who said he defended ethanol to his friends at the rally who told him it was a bad for his motorcycle. “He said ‘I kinda came unglued on them’,” he related. The biker told him that he had been talked in to using it at the rally the year before, and he’s “been using it this entire last year without any issue.”

In another case, White said a guy with a brand new Harley said he had been told by the dealer not to use ethanol and he wanted to get a response to that. “And I said why would you believe me?” White said. “I didn’t engineer your motorcycle, I didn’t put the parts together, I’m not providing a warranty for that motorcycle.” The man agreed, noting that neither did the dealership, but his owners manual from Harley in fact said he could use 10% ethanol. “Harley’s been doing this a long time, as have (other motorcycle manufacturers) they know what fuel is going to be most prominent, least expensive, highest octane option for these motorcycles, and it’s going to be ethanol.”

White says they are looking forward to next year, which will be the 75th annual Sturgis Motorcycle Rally, where RFA will having an even bigger presence with an even bigger crowd.

Listen to Robert talk about this year’s ethanol promotion at Sturgis in this interview:
Interview with Robert White, RFA

Oxygenate from Ethanol and Corn

xfxF Technologies Inc. is an advanced biofuel company that has developed a chemical process to convert corn or biomass plus alcohol (especially ethanol or methanol) into an oxygenate that can be blended with gasoline and diesel.

cutc-14-rob-randle“It’s a completely chemical process – no enzymes, no bacteria, no fermentation,” said Bob Randle of xF Technologies, who spoke at the recent Corn Utilization and Technology Conference. The end products are furoates – from either ethanol, methanol or butanol – that can then be used as oxygenates for fuel transportation to improve mileage, reduce emissions, increase lubricity, and more.

Randle says the technology offers co-location and add-on opportunities for ethanol and corn wet milling plants. “Because our primary feedstocks are corn and ethanol, or biomass and ethanol,” he said. “We can also be co-located with a cellulosic ethanol plant as well.”

Learn more in this interview: Interview with Bob Randle, xF Technologies

2014 CUTC Photo Album

Who Goes to CUTC and Why

cutc-14-novaset-burrisAs the name implies, the Corn Utilization and Technology Conference is a scientific and technical kind of meeting, which is organized every two years by the National Corn Growers Association with presentations focusing on the latest research, concepts and applications in the corn world.

A wide variety of people attend the event, such as Brian Burris with Novosep, a life sciences and biotechnology company with facilities all over the world. “I’m invested in the industry,” he said about why he attended the 2014 conference. He’s been to the conference before but not lately and was “looking for some intellectual stimulation and that objective was definitely fulfilled.”

As a chemist, Burris found this year’s focus on corn processing very interesting and he highly recommends the conference to anyone in the industry. Interview with Brian Burris, Novosep

2014 CUTC Photo Album



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