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Governors' Biofuels Coalition
NEWS UPDATE March 18, 2014

Ethanol Pares Largest Quarterly Gain Since 2010 on Cuts

By Lucia Kassai, Bloomberg  •    •  Posted March 18, 2014

Ethanol futures pared the largest quarterly gain since 2010 as distillers slowed production because of difficulty moving the biofuel to markets. Ethanol has risen 28 percent in the first quarter, ranking behind only coffee and lean hogs among commodities, as the frigid winter and competition for rail space made it harder to move the fuel, prompting some plants to curtail output. Last week’s 7 percent advance was the sixth in a row. [ read more … ]

Ethanol profits in 2013 second highest on record

by Christopher Doering, Des Moines Register  •    •  Posted March 18, 2014

The average U.S. ethanol plant made a profit of $23 million last year, the second most profitable on record, as producers of the renewable fuel benefited from lower corn prices, according to a study by the University of Illinois. Scott Irwin, an economist at the university, said profits last year were just short of the $25 million plant average high posted in 2007. It’s been a volatile ride for ethanol producers during the last few years as high corn prices in 2012, the result of the widespread U.S. drought, lead the average ethanol plant to lose $7.3 million. That forced many plants to close or roll back production. The average from 2007 to 2013 was a profit of $7.4 million, the study found. [ read more … ]

Weather, other issues driving up ethanol prices

By MATT OLBERDING / Lincoln Journal Star  •    •  Posted March 18, 2014

Any possible effect on gas prices remains to be seen. Nationally, AAA says wholesale ethanol prices have topped $3.50 a gallon in many markets, which has put “upward pressure” on gas prices, since more than 90 percent of the gas sold in the U.S. is 10 percent ethanol. Locally, according to AAA’s Fuel Gauge Report, gas prices have actually dropped 4 cents in the past week, after rising nearly 20 cents in the past month. Sneller said ethanol continues to be considerably cheaper in Nebraska than gasoline — about 50 cents a gallon cheaper — although that spread has narrowed more than 40 cents since the beginning of the ye [ read more … ]

Rail Problems Impacting Ethanol Supplies

by Cindy Zimmerman, Domestic Fuel  •    •  Posted March 18, 2014

One impact of the long, cold winter across the nation has been weather-related rail disruptions that are taking a toll on ethanol supplies and production. The record winter weather patterns that have caused repeated snowstorms have resulted in stalled trains, frozen controls and increased demand for rail cars. All that has made it difficult to move ethanol to the Northeast. [ read more … ]

Note: News clips provided do not necessarily reflect the views of coalition or its member governors.