Tag Archives: ethanol

Tuesday saw mostly higher grain prices. Soybean bulls had to fight back the bears to make limited gains on the day. Darin Fessler, Lakefront Futures and Options, highlights that soybeans continue to have the strong weather story and Chinese demand that keep bulls in charge. However Fessler encourages producers to have plans and targets in place in case the commodity market quickly shift. Fessler reminds listeners of what happened 4 plus year ago when commodity prices were near similar levels.

Fessler also looks into the current cash market which continues to encourage selling the physical commodity. The market offers little carry between contract months and Fessler believes there might be better options to sell the grain and own paper to take advantage of higher moves in the market.

The broader market on Tuesday was feeling fairly risk on with the DOW Jones hitting 30,000 and crude oil up over 4%. Yet Fessler doesn’t see the current rally in commodities as inflation rather the result of production concerns combined with strong demand. For Fessler this means there is still room for commodity inflation in 2021.

You can catch the full conversation with Fessler here:

  • Cash market weakness coming out of the north
  • Are the cattle to big?
  • What is behind the strength in the soybeans
  • Will soybean prices continue to grow?
  • Why are corn prices going up?
  • Wheat continues to see dryness global
  • Sum it up its weather & China
  • Ethanol report out on Wednesday saw production tick lower
  • Not endorsing one candidate over the other how does Nov 4th play into mkts
  • Election risks
  • Could there be an influx of dairy on the cattle market with current milk prices?

The Energy Information Administration says U.S. ethanol production hit its highest level in five weeks, while inventories reached the largest number seen since the end of August.

Ethanol output in the seven days before October ninth averaged 937,000 barrels a day, up from 923,000 the previous week. The EIA says it’s also the most ethanol production since September fourth. The Midwest, which far and away produces the most ethanol in the country, reached an output of 900,000 barrels of ethanol a day, up from an average of 881,000 barrels, and was the region’s highest output since late July.

East coast production jumped to an average of 10,000 barrels a day, up from 6,000 the previous week. Rocky Mountain output was unchanged from the prior week, producing an average of 10,000 barrels a day. Gulf Coast production took the biggest dive from the previous week, coming in at an average of 9,000 barrels per day after averaging 17,000 barrels a day, with the drop likely due to the effects of Hurricane Delta.

The EIA also says inventories increased last week to 20 million barrels. That’s up from 19.6 million barrels the week prior and the largest amount of ethanol in storage since late August.

ClearFlame Engine Technologies, a start-up dedicated to the development of clean engine technology for the heavy-duty truck, off-highway and industrial markets, today announced that it has successfully matched the torque and power of a commercial diesel engine using ethanol in place of diesel fuel, delivering more than 500 horsepower and over 2,500 foot-pounds of torque while eliminating the need for additional aftertreatment such as selective catalytic reduction or diesel particulate filter systems.

ClearFlame achieved these results on a Cummins X15, a 500hp 15L heavy-duty engine using the company’s high-temperature stochiometric combustion process, which leverages higher temperatures to achieve true diesel-style combustion of any decarbonized fuel. Temperatures are achieved by optimizing existing engine thermodynamics and adding insulation on key engine components. The fuel injection system is also engineered to accommodate decarbonized fuels like ethanol.

“The results we’ve seen on the Cummins engine mark a critical milestone in the commercialization of ClearFlame’s technology,” said Dr. Julie Blumreiter, chief technology officer and co-founder of ClearFlame. “Achieving these key targets without the use of complex aftertreatment systems helps diesel engine manufacturers to preserve their core engine technology requirements, driving a cost-effective, rapid-to-market solution that addresses evolving emissions regulations.”

ClearFlame’s unique engine technology enables low-carbon and carbon-negative fuels to be easily integrated into existing diesel engine platforms, offering a more sustainable and cost-effective solution than diesel fuel. It provides the same performance, efficiency, and rugged practicality associated with diesel engines, while eliminating the need for costly aftertreatment solutions. By replacing 100 percent of the petroleum fuel used with decarbonized fuels such as ethanol, ClearFlame’s engine technology significantly reduces greenhouse gas emissions, particulate matter and smog, helping to meet stringent emissions regulations while reducing overall engine cost.

“The results from ClearFlame’s first commercial platform tests are extremely promising and demonstrate a real world, sustainable solution for diesel engine manufacturers as decarbonization requirements continue to evolve in the off-highway, heavy-duty and industrial sectors,” said Dr. BJ Johnson, CEO and co-founder of ClearFlame. “We look forward to advancing our technology with additional engine OEM partners, so we can highlight our low-cost benefits across a range of engine platforms and applications.”