AAE 0.00% 0.8¢ agri energy limited

sale of beatrice biodiesel, page-48

  1. 13,176 Posts.
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    Sorry to see this one go down folks but please understand that the biofuel sector is not a safe way to make money in a market where food commodity prices are effectively hyperinflating. By owning biodiesel stocks you are effectively betting that grains prices will go down. With world food stocks down to 40-45 days of consumption high foods prices are actually set to move even higher. There is no conspiracy here ... just plain common sense that if your feedstock prices hyperinflate, without subsidies the business model will always be setup for failure.

    If you own biodiesel stocks the first thing you should check in the morning is the price of corn and the price of soybeans. If they are moving higher (and they are both currently at decade long highs) then the future is grim for biofuels.
 
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