GLG News by Mr. Gary Drimmer, Chief Executive Officer
GLG News is now G+ Insights
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G+ is a community for professionals, academics and entrepreneurs to connect through online discussions and in-person meetings. You will continue to see G+ Insights (formerly GLG News) here as well as on the G+ website, where you can share and discuss the G+ Insights you read.
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May 30, 2008
Sugar prices sink to 7-month low on supply glut | ap.google.com
World sugar prices have dropped below the 10 cent/lb. level , even as energy prices and food demand increases. Why is this happening, will it end soon and what are the implications for ethanol, HFCS and alternative crops next year?
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Cellulosic Ethanol To Become New King In U.S.
May 13, 2008
Food Shortages Turn Corn to Toast as Fuel | enr.ecnext.com
With corn prices climbing to record new highs everyday, there is additional incentive to accelerate the drive to switch from corn to cellulose as the raw material for ethanol in the U.S. The Department of Energy, Congress and private enterprize have their foot on the accelerator to find a commercially viable cellulosic ethanol production technology.
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Two To Tango- Argentine Farmers Strike as Government Not Playing Their Tune
May 12, 2008
Argentine Farm Strike Threatens Economy, Grain Sales | www.bloomberg.com
Argentine farmers are blocking highways and roads in their second strike of the year protesting increases on taxes. Major grain companies ADM, Bunge, Cargill, Corn Products and Dreyfus have major operations that are being impacted. Last month the strike caused major food shortages in Buenos Aires as well as a disruption in Argntine exports.
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A Real Soultion to Global Food Shortages and World Hunger
May 5, 2008
Bush Pushes Shift In U.S. Food Aid - President Proposes $770 Million Boost; New Tack in Africa | s.wsj.net
The rapid increase in rice, wheat and vegetable oil prices has resulted in protests around the world as the poor are unable to feed themselves. The U.S. government is finally realizing that current model of sending U.S. farm products on U.S. flag ship vessels is a waste of money and neither helps the U.S. farmer or the poor around the world. A new model needs to be developed and this article and President Bush's announcement are just the first steps in what is needed. Financing to increase the use of farm inputs in the only way to increase production and solve the food issue as well as reduce global poverty.
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Urgent: Wheat Rust Could Threaten World Supply and Stability
March 18, 2008
Kenya: Spread of Wheat Disease Sparks Shortage Fears | allafrica.com
Ug99 a wheat rust first found in Uganda in 1999 has been on the move. It first began spreading to neighboring countries in 2001, It is now as far away as the Middle East, with the likelihood that it will move east into some major wheat growing regions of Asia. With global wheat supplies already at 40+ year lows, are we about to see riots when there is no bread in some of the poorest countries of the world?
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La Nina Still a Threat to Crops in Argentina, Brazil and the US
January 17, 2008
La Nina Still Going in January 2008 | earthobservatory.nasa.gov
The La Nina phenomenon, which could prolong the drought in the SW and SE of the US should be peaking this month, but there is the risk, that it could persist into the spring, or even for years. NASA's satellites, using microwave scanners show that the current La Nina continued to gain strength in November and December, which probably is the cause for the dry conditions in northern Argentina and the dry conditions at the beginning of Brazil's soybean seeding last year.
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GM Throws Support For Cellulosic Ethanol With Start-Up Coskata Inc.
January 16, 2008
GM eyes breakthrough in cellulosic ethanol | www.reuters.com
GM announces a commitment for cellulosic ethanol shortly after Daimler along with ADM and Bayer CropSciences announced last week an alliance to develop jatropha. This comes at a time when the EU and the US has begun to again question the use food crops for fuel, as well as the environmental net benefit of corn, or the use of palm or soybeans produced where there used to be rain forests. Will all this support result in an economical breakthrough in the commercial production of cellulosic ethanol and if so, when?
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Large Companies Pick Up Jatropha Banner:
January 10, 2008
ADM, Bayer CropScience and Daimler team up to turn Jatropha into major biofuel crop | biopact.com
Jatropha is gaining momentum with three major players announcing an an alliance which should improve the economics of Jatropha production on a global basis. Jatropha has the potential of being grown on 30 million hectares (over 70 million acres).
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Monsanto is Bringing Biotechnology Magic to a Corn and Soybean Farmer Near You
January 7, 2008
Monsanto Sees Most Robust R&D Pipeline in Company History | www.foxbusiness.com
Monsanto's 1st quarter results jumped a surprising 188% beating most analyst projections. In their conference call they also reported on the results of their 2007 field work and research work. It continues to surpass what could have been anticipated even three years ago, as technology continues to allow Monsanto to use technology that is speeding up and improving improvements that is putting them in the drivers seat among seed and plant biotechnology companies. While the competition might not be happy, they are having trouble staying in the race. The only bumps in the road, are government regulators in the US and around the world. It could still prove to be a big bump to Monsanto obtaining their 2012 and 2020 targets. In the mean time they are speeding ahead.
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Energy and Farm Bills Renew Renewable Fuel Enthusiasm and Stocks
December 17, 2007
Alternative energy shares rally after Senate passes scaled-back energy bill | money.cnn.com
Many ethanol and biofuel stocks, along with the overall alternative energy sector took a nice bounce after the Senate passed its energy bill. Farm bill also has finally been passed and both will need working before being sent to the President, who might just not sign them. Corn ethanol stocks have been hurting this year as corn prices were rising and ethanol prices were dropping as the outlook for inventories and production of the two were going in opposite directions. With a 15 billion gallon a year mandate for corn to ethanol use by 2022, it does not appear that corn to ethanol has room to expand much beyond plants that are in production and under construction. Cellulosic ethanol has additional monetary incentives under both bills as well as a 21 billion a year mandate for use by 2022 (including other alternative liquid fuels such as biodiesel). These fuels have a longer road to becoming economical.
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Food Prices Rising- Corn, Soybean and Wheat Prices Are Ready to Set Record Prices in 2008-
December 13, 2007
PRICES FOR 2008 CROPS MOVE TO NEW HIGHS | www.farmdoc.uiuc.edu
There has been a paradyne shift in commodity prices. It is hard to think of a return to $20 a barrel oil. In the same way grain and oilseed prices are now at a new level as demand has grown and will outstrip supplies for the next few years. Higher prices and possibly new record prices are likely in 2008. Biofuels and growth in food demand have driven down inventories and weather around the world (with the exception of North America so far) has also contributed to reduced supplies. The latest USDA ending inventory estimates for the current crop year show how tight things are in the US and the rest of the world. Wheat inventories in the US will be the lowest in the past 60 years. Now that is scary.
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Corn, Soybean and Wheat Prices Are Ready to Set Record Prices in 2008- Impact on Food Prices
December 12, 2007
PRICES FOR 2008 CROPS MOVE TO NEW HIGHS | www.farmdoc.uiuc.edu
There has been a paradyn shift in commodity prices. It is hard to think of a return to $20 a barrel oil. In the same way grain and oilseed prices are now at a new level as demand has grown and will outstrip supplies for the next few years. Higher prices and possibly new record prices are likely in 2008. Biofuels and growth in food demand have driven down inventories and weather around the world (with the exception of North America so far) has also contributed to reduced supplies. The latest USDA eneding inventory estimates for the current crop year show how tight things are in the US and the rest of the world. Wheat inventories in the US will be the lowest in the past 60 years. Now that is scary.
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Corn ,Soybeans and Wheat Resume Climb of Argentine and Brazilian Weather - How High Can They Go?
December 10, 2007
Oil : Oil futures drop as hopes fade of 0.5% rate cut | www.taipeitimes.com
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. Major processors and exporters such as Cargill, ADM, Bunge, LDC and Corn Products International might see a drop in their South American profits next year.
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Major Jatropha to Biodiesel Project in the Philippines
December 4, 2007
Bionor to invest $200 million in jatropha plantations in the Philippines | biopact.com
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 future?
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La Nina Threatens to Hurt Global 2008 Wheat, Corn and Soybean Crops
November 20, 2007
La Niña Likely to Linger | www.kiplinger.com
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 in an explosive and dangerous price jump. Wheat and soybean inventories are at historically low levels and can ill afford to drop due to another crop failure.
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Demand for Soybeans and other Oilseeds Increasing due to Biodiesel and China
November 14, 2007
Quarterly Oilseeds Outlook: Economist Intelligence Unit | www.soyatech.com
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 animal feeds continue to push prices up, added by the weak dollar.
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ADM results are stellar thanks to wheat trading even in light of poor ethanol margins
November 7, 2007
ADM first quarter earnings climb 9% | www.bakingbusiness.com
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 weak US dollar has also resulted in higher exports from the US. Overall corn milling did not hurt ADM results that much, as margins for wet corn milling for sweeteners and starches remained strong, as have been seen in Corn Products International and Tate & Lyle's recently reported quarterly results.
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ADM Could Switch Some Ethanol Capacity to High Fructose Corn Syrup
October 7, 2007
ADM shrugs off low ethanol prices, but keeps options open | news.medill.northwestern.edu
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.
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India Opens Imports to Genetically Modified (GMO) Soybean Oil
October 5, 2007
Government allows import of GM seed edible oil | www.business-standard.com
More countries are producing growing quantities of genetically modified (GMO) soybeans and corn. As prices of foods climbs, countries around the world are being forced to recognize that these crops are safe and cheaper. Will the EU join the crowd?
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Bumper Crop of Corn: Storage and Handling Issues
August 13, 2007
USDA: 13 billion bushels of corn | deltafarmpress.com
The USDA updated their crop estimate for this year's harvest to a silo breaking 13.053 billion bushels of corn. That is 233 million tons and enough corn to increase ethanol production, feed additional chickens and hogs, export more and still increase the carryover from last year. While the crop still has a month before harvest begins, it is clear that the infrastructure at harvest time is going to be strained.
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