"About 55 percent of the contiguous United States is in a drought, just as corn plants should be pollinating, a period when adequate moisture is crucial. The United States ships more than half of all world exports of corn, which is made into dozens of products, from starch and ethanol to livestock feed."
http://articles.chicagotribune.com/2012-07-17/news/sns-rt-us-usa-droughtbre86f1d4-20120716_1_heat-advisories-corn-crop-corn-feed
Wednesday, July 18, 2012
USDA'S Vilsack says drought will spike crop prices--Chicago Tribune
"U.S. Agriculture Secretary Tom Vilsack said the worsening Midwest drought will result in sharply higher crop prices but maintained there is no need yet to seek a reduction in corn-based ethanol production."
http://www.chicagotribune.com/news/sns-rt-us-usdas-vilsackbre86h12z-20120718,0,4801350.story
http://www.chicagotribune.com/news/sns-rt-us-usdas-vilsackbre86h12z-20120718,0,4801350.story
"Agriculture Secretary tells White House drought getting worse"CNBC
“In his briefing to President Obama, Vilsack said that the drought of historic proportions will shrink this year's harvest of corn and soybeans. The crops are used for food and feed and because of that Vilsack said meat and poultry prices will be higher this year and next….Hard-hit livestock producers and other groups want the Environmental Protection Agency to give oil refiners a waiver from the mandate to blend ethanol into gasoline, arguing demand for the corn-based fuel was driving up corn prices.
"Ag Secretary Says RFS Okay with Ethanol Stocks" Cindy Zimmerman
http://domesticfuel.com/2012/07/18/ag-secretary-says-rfs-okay-with-ethanol-stocks/
"Agriculture Secretary Tom Vilsack held a sobering press briefing Wednesday after meeting with President Obama about the impact of the nation’s drought on agricultural production.
Vilsack says the drought is “most serious situation we’ve had in 25 years” with 61% of the land mass of the United States is currently characterized as being impacted. About one third of the counties in the United States are now designated as secretarial disaster areas and that is expected to grow higher. “This obviously will have an impact on the yields,” he said.
When asked if the drought impact on corn should prompt action by the Environmental Protection Agency to roll back the use of corn for ethanol under the Renewable Fuel Standard, Vilsack said, “There is no need to go to the EPA at this time based on the quantity of ethanol that is in storage.”
The latest Energy Information Administration data from last week showed another drop in ethanol production from the previous week bringing the average weekly rate down to 841,000 barrels per day for an annualized rate of 12.89 billion gallons. Stocks of ethanol now stand at 19.6 million barrels or about 824 million gallons."
"Agriculture Secretary Tom Vilsack held a sobering press briefing Wednesday after meeting with President Obama about the impact of the nation’s drought on agricultural production.
Vilsack says the drought is “most serious situation we’ve had in 25 years” with 61% of the land mass of the United States is currently characterized as being impacted. About one third of the counties in the United States are now designated as secretarial disaster areas and that is expected to grow higher. “This obviously will have an impact on the yields,” he said.
When asked if the drought impact on corn should prompt action by the Environmental Protection Agency to roll back the use of corn for ethanol under the Renewable Fuel Standard, Vilsack said, “There is no need to go to the EPA at this time based on the quantity of ethanol that is in storage.”
The latest Energy Information Administration data from last week showed another drop in ethanol production from the previous week bringing the average weekly rate down to 841,000 barrels per day for an annualized rate of 12.89 billion gallons. Stocks of ethanol now stand at 19.6 million barrels or about 824 million gallons."
"US 'absolutely not' mulling waiver to ethanol" agrimoney.com
http://www.agrimoney.com/news/us-absolutely-not-mulling-waiver-to-ethanol-rule--4761.html
"US energy watchdogs are "absolutely not" mulling an easing in ethanol targets to reduce the pressure on corn supplies, despite significant damage to the crop from heat, a senior official said.
"US energy watchdogs are "absolutely not" mulling an easing in ethanol targets to reduce the pressure on corn supplies, despite significant damage to the crop from heat, a senior official said.
Persistent market speculation in grain markets that the Environmental Protection Agency is poised to waive obligations for ethanol use in the US is "just rumour", a spokesperson for the watchdog told Agrimoney.com."
Sunday, July 15, 2012
Poor Corn Crop Will Have Major Impact on Ethanol Market
" Because so much of the corn crop is devoted to meeting ethanol mandates, there is a potential supply conflict being set up between food producers and ethanol producers.
This was always the risk in my mind; that a major drought could reduce the corn crop and result in surging fuel and food prices at the same time"
http://www.consumerenergyreport.com/2012/07/13/poor-corn-crop-will-have-major-impact-on-ethanol-market/
This was always the risk in my mind; that a major drought could reduce the corn crop and result in surging fuel and food prices at the same time"
http://www.consumerenergyreport.com/2012/07/13/poor-corn-crop-will-have-major-impact-on-ethanol-market/
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