Texas biofuel companies facing harsh difficulties
In an article that appeared on the Houston Business Journal, analyst Margaret Allen writes about how difficult times are negatively affecting some Texas biofuel companies. The article reports on how at least two small biodiesel plants have ceased operating because of the lack of feedstock and how more closures are forecast in the following months. This is all happening despite an increase in demand, in production and other plants that have been opened recently.Ethanol producers don't have better news: corn prices are high and, as with most grains, it is subject to speculation. The article mentions another trouble spot: a shortage of crushing plants.
The truth is that grain prices are up in the market. Some voices have been raised saying that it's not due to a shortage but simple commodity speculation. What's your take in this?
Related:
- Accenture forecasts a biofuel bubble burst
- China invests heavily in biofuel technology to minimize food vs. fuel debate
- Biofuels will be responsible 3-6 percent grain price hike in 2020 - or maybe 40 percent
Reader Comments (Page 1 of 1)
shane 2:38AM (10/25/2008)
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enoch 12:03AM (10/02/2007)
Speculation? Oil prices are also driven by speculators, which accounts to $15 to $20 per barrel.
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Domenick 5:53AM (10/02/2007)
My take is corn is a bad crop for ethanol production but it has been pushed in congress by corn seed and corn pesticide companies so that lobbyists, and not the market, have created a heroic failure for farmers and consumers and bio-fuel companies.
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tim 8:10AM (10/02/2007)
As the US $Dollar collapses, it becomes more profitable to ship commodities overseas. This creates shortages here which drive up prices. Look at the past 10 year history of the US $Dollar fiat currency. Now look at 10-year Gold. Are the international market’s worried? YOU BET!
The Fed has been printing like crazy, creating inflation and even created the housing bubble while trying to keep the US $Dollar solvent, but it's time to pay the piper.
I suggest you get your long-term investments out of the US $Dollar and out of the US Stock Market. Maybe the Yen or the Euro
Crash-Proof: How to Profit From the Coming Economic Collapse
http://www.youtube.com/watch?v=8Cz-6tYHK8I
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dean 1:42PM (10/02/2007)
domenick, I'm sure you have some proof to your theory, but are just holding back the evidence to tantalize us.
You tantalizer, you!
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jamesFF 3:27AM (10/04/2007)
Corn husk ethanol is a better option, since it dosen't cut into our food.
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