(Reuters) - German carrier Lufthansa (LHAG.DE) is ending the trial use of a biofuel mix for its planes because it has used up stocks of certified biofuel and no other reliable supplies are available.
The race to cut carbon dioxide emissions has heated up with the introduction this month of the European Union emissions trading scheme under which airlines must pay for the CO2 they emit.
While the airline industry wants to use biofuels to curb emissions, the lack of industrial production means only limited quantities are available.
European airlines, biofuel producers and the EU Commission last year signed a pact aiming to produce 2 million tonnes of biofuel for aviation by 2020.
(Reporting by Victoria Bryan; Editing by David Cowell)
(Reuters) - U.S. ethanol production hit a record high in the latest week, while stocks also rose, up more than 5 percent in the last week, the Energy Information Administration reported Wednesday.
U.S. ethanol production totaled 954,000 barrels per day in the seven days to December 2, up 24,000 barrels per day. The next highest production level was when ethanol production hit 939,000 barrels per day for the week ending December 3, 2010.
Ethanol inventories rose to 17.9 million barrels from 17 million barrels over the last week, the EIA said.
Linn Group analyst Jerrod Kitt said both output and inventories were higher than expected, and it appeared producers were racing to capture record spot margins.
Midwest plants on average were making 40 cents per gallon a week ago, though margins have compressed to 20-25 cents a gallon this week.
(Reporting by Carey Gillam; Editing by John Picinich)
(CME) US corn futures end just below Tuesday's close as traders evened positions ahead of key government crop reports Thursday. Futures were supported by outlooks for the USDA to report a tighter balance between US corn supply and demand while badly needed rains in drought-stricken parts of Argentina produced light price pressure. Still, losses were limited by fears the rains were too late to eliminate crop damage there, analysts add. CBOT March corn ended down 1/2c at $6.51 1/2 a bushel.
(Reuters) - U.S. corn and soy slid around half a percent, weighed down by a firm dollar and rains in Argentina that brought much-needed relief to parts of its drought-hit crop belt.
"Corn and soybeans are feeling a little bit of pressure from current rainfall in South America as we are seeing some relief to the drought-stressed crops," said Luke Mathews, Commodities Strategist at Commonwealth Bank of Australia.
(Reuters) - Rain finally started to hit Argentina's grain belt on Tuesday and farmers in the major agricultural exporter hoped the showers would last long enough to revive soy and corn fields dried out by a drought that raised global supply worries.
A long drought has shrunk the corn crop in Argentina, which the world has been counting on to replenish international stocks after a disappointing U.S. harvest.
(Bloomberg) The La Nina weather event that parched crops in Argentina and Brazil and flooded plantations in Thailand and Malaysia may be weakening, said Telvent DTN Inc. The Southern Oscillation Index, used to measure its strength, has declined since peaking in December, signaling it “has topped out,” said Bryce Anderson, an agricultural meteorologist, who correctly predicted that wet conditions would delay U.S. corn planting last year. Dry weather has wilted crops in Argentina, the world’s second-biggest corn exporter, and in Brazil, the second-largest grower of soybeans. Corn futures have climbed 13 percent in Chicago since Dec. 15 on concern that the lack of rain would cut production. Soybeans and wheat have each rallied about 10 percent since the middle of last month.
(Reuters) - Brent crude rose above $113, reversing losses as a blast in Tehran added to concerns of supply disruption from Iran, overshadowing worries about demand growth due to Europe's debt crisis.
"The market could be reacting to headlines of the blast and further price gains are possible during London and New York trading time, depending on Iran's reaction," said Ken Hasegawa, a derivatives manager with brokerage Newedge in Tokyo.
(Reuters) - Top oil exporter Saudi Arabia is nearing its comfortable operational production limits and may struggle to do much to make up for shortages that arise from new sanctions imposed on Iran by the West, Gulf-based sources said.
The kingdom, now pumping just under record rates of 10 million barrels per day, has poured billions of dollars into its vast oil fields, which on paper should ensure it has the ability to ramp up to 12.5 million bpd.
(Reuters) - Despite the shale boom, U.S. oil production growth is seen slowing in 2013 after posting big gains over the past few years, the Energy Information Administration said on Tuesday.
U.S. oil output is expected to climb just 80,000 barrels per day to 5.82 million bpd in 2013, down from the 170,000 bpd increase estimated for this year, the EIA said in its monthly report.
(Reuters) - China's apparent crude oil consumption could accelerate in 2012 from a year earlier due to ongoing strong demand for energy and chemical products, forecasts from an industry association showed on Wednesday.
The China Petroleum and Chemical Industry Federation estimated that apparent crude consumption will increase 5.3 percent year on year to 480 million tonnes in 2012, or 9.6 million barrels per day, compared with its forecast of a rise of around 3.5 percent in 2011.
(Bloomberg) Oil rose from the lowest close this year in New York on signs that crude supplies may be reduced by a strike in Nigeria and the threat of sanctions on Iran. The Nigerian oil union Pengassan said it has started the process of shutting the platforms of Africa’s top petroleum producer to support demands for the return of fuel subsidies by labor unions. Japan may significantly reduce its imports of crude from Iran, the Yomiuri newspaper reported, without saying where it obtained the information. Futures for February settlement rose as much as 46 cents, or 0.5 percent, to $101.33 a barrel in electronic trading on the New York Mercantile Exchange. The contract was at $101.30 at 10:59 a.m. Sydney time. Crude yesterday slipped 1.3 percent to $100.87, the lowest close since Dec. 30.
(Reuters) - Malaysian crude palm oil futures slipped as euro zone debt concerns overshadowed prospects of lower edible oil output due to dry weather in South America and heavy rains in Southeast Asia.
"Traders are mainly still in a puzzle mode over the bearish MPOB data. They will be looking for the USDA report to drive the market," said a dealer with a foreign commodities brokerage in Kuala Lumpur, referring to the U.S. Department of Agriculture report due Thursday.
(Reuters) - A poor rapeseed harvest looming in India could its edible oil import requirements in coming months and add support to global vegetable oil prices at a time of concern about drought damage to South American soybean harvests, Hamburg-based oilseeds analysts Oil World said on Tuesday.
Indian oilseed processors warned on Jan. 4 that a poor rapeseed crop was likely in 2012. The extent of crop damage is unclear but larger edible oil imports are expected.
(Reuters) - Ukraine's 2012 rapeseed harvest is likely to fall to between 0.95 and 1.2 million tonnes against 1.42 million tonnes in 2011 due to a poor state of winter rapeseed crops after a severe drought, analyst UkrAgroConsult said on Tuesday.
"A significant portion of weak, sparse crops may be lost in the winter or spring. We currently forecast Ukraine's 2012 winter rapeseed crop at 950,000 to 1.2 million tonnes," the consultancy said in a report.
