Monday, May 16, 2011

Duh: "'Pricey wheat' forces shutdown at British ethanol pioneer"

Climateer Investing, September 5, 2007:
Making Ethanol from Wheat is Stupid

Agrimoney, May 12, 2011:
Europe's largest wheat ethanol plant is to mothball its operations, in what is believed to be a response to high wheat prices, in another setback to the nascent biofuels segment, has learned.
The UK's Ensus plant is, as of next month, to shut capacity temporarily, sources said, a move believed to be in response to wheat prices which hit a record £222.00 a tonne on the London futures market last month.
The plant is, to facilitate the shutdown, accelerating delivery of wheat ordered into June and July, traders said.
Meanwhile, buyers of distillers' grains, a byproduct of ethanol manufacture used as a livestock feed, are seeking supplies of alternative raw materials.
A shutdown could enable the site to tap into newly harvested supplies being offered for lower prices. London's new-crop November lot was trading $173.50 a tonne in late deals in London, a discount of nearly 15% to the expiring May contract.
Representatives of the Ensus plant have yet to confirm or deny the shutdown to Glencore Grain, which is responsible for the site's wheat supplies, referred calls to Ensus....MORE
Agrimoney, May 13, 2011
Wheat prices realign after Ensus confirms shutdown

Here are the Climateer Investing headlines bracketing the last time the topic came up:

Sept. 5, 2007
Wheat Surges to Record on Increased Demand, Supply Concern
Sept. 6, 2007
Wheat Futures Rise to Record on Global Demand, Supply Concerns
Sept. 14, 2007
Market slices,Crisis in Prices: Wheat