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?

[Source: Bizjournals (sub's req'd)]

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