Vegetable Oils Forum

AFOA 2012

• Distillers Corn Oil– Specification Proposal– Production

• Rail car situation• Renewable documentation• Mineral Oil

Distillers Corn Oil Specifications

• FFA: 15.0 % base, with 1:1 discount up to 20% maximum

• Moisture: 1.0 % maximum• Insoluble Impurities: 0.5 % maximum• Unsaponifiables : 2.5 % maximum• MIU total: 3.0% maximum• IV: 115 minimum• General appearance: reddish brown colored

Distillers Corn Oil Production

• 65% to 75% of ethanol plants extracting• 1.5 to 1.8 billion lbs of annual corn oil

production• Yields improving – Anti emulsion process aids– Management focus– Fine grind– Slower grind rates

Rail Car Situation

• Petroleum companies bidding $2500 to $3000 per month

• 125 pts per month – subleasing more profitable than trading products

• Charging demurrage for held cars• Ethanol industry has subbed cars

Renewable Documentation

• Contracts specifying additional feedstock source documentation

• RINS / CARB

Mineral Oil Specifications

• European driven – being adopted elsewhere• Likely added to existing specifications• Not able to detect food grade mineral oil vs

non food grade mineral oil• Sources – Rail car / metal wipes– Pumps / hydraulics

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