Ethanol News
United Ethanol • Growing To Meet Your Needs
Ethanol News 1250 Chicago St. • Milton, WI 53563 • (608) 868-5900 • www.unitedethanol.com
November 2016
Greetings from the CEO United Ethanol wrapped up its third quarter with the plant running well, with many production records being broken. David Cramer President and CEO Contents Greetings from the CEO ................... 1 Production on track for record year...................2 Third-quarter financials .......... insert
Corn quality and yields in the Milton area are good, and year-to-date, United Ethanol has ground 12.7 million bushels of corn, up a half million bushels from a year ago. We expect to be a premium supplier of DDGs in the future, as ethanol plants located in the eastern corn belt are having problems with vomitoxin inflicted corn. This disease is not impacting the corn coming into our plant, therefore United Ethanol’s DDGs are a more desirable product to the entire world. As Chad shared in his report, the DDG market slumped after China and Vietnam pulled back on purchases. As a result, the price dropped $30 per ton, and domestic end users were attracted to using the DDG market vs. soybean meal. As they say, “there’s nothing better for cheap prices than cheap prices,” resulting in improved volumes that create a good outlook for year end.
As of Sept. 31, 2016, United Ethanol produced 36,400,000 gallons of ethanol. The plant also produced 90,983 tons of distiller’s grains, and extracted 8,400,000 pounds of corn oil. Ethanol and oil unit numbers are up two million gallons and two million pounds respectively from a year ago, while DDGs are relatively the same from last year’s nine month numbers. Much of the above will lead to a strong finish for the year in profitability at United Ethanol. Have a safe and joyous fall season as we prepare for Thanksgiving and Christmas. Cooperatively Yours,
President & CEO
1250 Chicago St. Milton, WI 53563 This newsletter is compliments of United Ethanol, LLC and is distributed to United Ethanol, LLC investors.
Production on track for record year By: Chad Campbell, Chief Operating Officer The third quarter showed positive earnings for United Ethanol LLC. For the first nine months of 2016, ethanol production is two million gallons ahead of last year’s performance, on track for a record production year. Domestically, dried distiller’s grains (DDGs) have lost a third of the value due to China’s imposed tariffs on DDG imports into that country. DDGs are the second highest volume product leaving the plant, so this degradation is impacting the entire industry. On the plus side, ethanol demand is up both domestically and globally. Business has also been impacted by the price of natural gas, which is up $1/mbtu. The strong US dollar hurts exports, while a weak US dollar allows opportunities to export more products. We have a new road at the entrance to the plant, thanks to the City of Milton. Truck drivers are appreciating the smooth road as they approach the plant.
“Presently, the use of ethanol in the nation’s fuel
supply is at 10.2%, the highest it has ever been.”
Ethanol News 1250 Chicago St. • Milton, WI 53563 • (608) 868-5900 • www.unitedethanol.com
November 2016
Greetings from the CEO United Ethanol wrapped up its third quarter with the plant running well, with many production records being broken. David Cramer President and CEO Contents Greetings from the CEO ................... 1 Production on track for record year...................2 Third-quarter financials .......... insert
Corn quality and yields in the Milton area are good, and year-to-date, United Ethanol has ground 12.7 million bushels of corn, up a half million bushels from a year ago. We expect to be a premium supplier of DDGs in the future, as ethanol plants located in the eastern corn belt are having problems with vomitoxin inflicted corn. This disease is not impacting the corn coming into our plant, therefore United Ethanol’s DDGs are a more desirable product to the entire world. As Chad shared in his report, the DDG market slumped after China and Vietnam pulled back on purchases. As a result, the price dropped $30 per ton, and domestic end users were attracted to using the DDG market vs. soybean meal. As they say, “there’s nothing better for cheap prices than cheap prices,” resulting in improved volumes that create a good outlook for year end.
As of Sept. 31, 2016, United Ethanol produced 36,400,000 gallons of ethanol. The plant also produced 90,983 tons of distiller’s grains, and extracted 8,400,000 pounds of corn oil. Ethanol and oil unit numbers are up two million gallons and two million pounds respectively from a year ago, while DDGs are relatively the same from last year’s nine month numbers. Much of the above will lead to a strong finish for the year in profitability at United Ethanol. Have a safe and joyous fall season as we prepare for Thanksgiving and Christmas. Cooperatively Yours,
President & CEO
1250 Chicago St. Milton, WI 53563 This newsletter is compliments of United Ethanol, LLC and is distributed to United Ethanol, LLC investors.
Production on track for record year By: Chad Campbell, Chief Operating Officer The third quarter showed positive earnings for United Ethanol LLC. For the first nine months of 2016, ethanol production is two million gallons ahead of last year’s performance, on track for a record production year. Domestically, dried distiller’s grains (DDGs) have lost a third of the value due to China’s imposed tariffs on DDG imports into that country. DDGs are the second highest volume product leaving the plant, so this degradation is impacting the entire industry. On the plus side, ethanol demand is up both domestically and globally. Business has also been impacted by the price of natural gas, which is up $1/mbtu. The strong US dollar hurts exports, while a weak US dollar allows opportunities to export more products. We have a new road at the entrance to the plant, thanks to the City of Milton. Truck drivers are appreciating the smooth road as they approach the plant.
“Presently, the use of ethanol in the nation’s fuel
supply is at 10.2%, the highest it has ever been.”
