GLG News by Ethanol Experts (Brazil)

Lack of infrastructure is creating price-gluts, and low or negative margins for ethanol producers.  This situation could continue for another two years, as improvements in infrastructure struggle to keep up with expansions in production of ethanol.  Corn acreage is already at its highest level...

Argentina is becoming dry, and Brazil could follow. This is pushing soybean up towards record high prices, with corn returning to five month highs. Spring wheat, which is yet to be planted in North America is reaching for the sky as Argentina imposes export controls and Canada confirms a smaller harvest....

What might be the largest single project for jatropha production has just been announced by Bionor in the Philippines. With soy oil prices reaching record high prices and the cry against food to fuel and for sustainable farming, is this the agriculture project of the future? How soon will we see that...

US farm programs have lost their focus, and are providing subsidies to farmers during a year of record incomes.  In addition, a continued focus by the US government on expanding biofuels will do more to stimulate agricultural production in other countries, than it will here in the US.

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....