GLG News by Agriculture Equipment Experts

The biofuels boom is driving up prices for farmland across the US.  Typical prices for top farmland selling with no development potential, are now around $6,000 per acre or more in Central IL.  The higher prices are good for current owners, but bad for anyone renting land, which covers the...

The adoption of new crops for biofeedstocks will be driven by how efficient the crops are (gallons per acre), and in how they fare economically (net returns per acre).  Crops like camelina may be able to gain a foothold in regions where corn and soy are less viable, like the US west and northwest. ...

The secondary effects of the world-wide ethanol boom are starting to show up in increases in prices, and in earnings, of which Deere is an excellent example.  Expansion of sugarcane in Brazil is driving sales of Deere machines there, but the effects of the big US corn crop and record high commodity...

The National Weather Service is reporting continued continued strengthening of the La Nina water current which could result in drought in Brazil this crop year and continued drought in the SE and SW of the US. Any reduction in yields in the Americas this year on wheat, soybeans and corn could result...

Soybean prices have continued to climb as soybean oil prices set new record high prices. Soybean oil futures over the past six months have had over a .96 correlation to price movements of crude oil futures. Continued growth in demand for vegetable oils for food and biodiesel and vegetable proteins for...

ADM surprised the market that had begun to focus on the company as a corn to ethanol company, but the company still is heavily focused on grain processing and grain trading. Big jumps in grain prices and logistical costs provided ADM with opportunities to increase margins in other non-ethanol markets....

The biofuels sector continues to be the focus of negative stories in the US and Global press, highlighting many of the downsides of the push towards ethanol and biodiesel.  These stories, by themselves, might not create significant problems for the industry, but in combination with the twin economic...

Ethanol and corn has been booming not because the US government called for it, but rather because there were opportunities for profits, largely due to oil prices. Subsidies for biofuels in the US should have a hard end-date. Dollars spent on food aid should increase, rather than expecting world commodity...

GMO products will likely ride the biofuel train into other formerly closed markets, as global supplies of corn and beans shrink due to biofuel consumption, and non-GMO alternatives disappear.

Ethanol margins are hurting, given high corn prices and low ethanol prices. Large plants still have positive margins, but they are greatly reduced. Part of ADM 's ethanol comes from plants it originally switched from high fructose corn syrup (HFCS) and starch production.