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Archer Daniels Midland and BioFuel Energy Facing Deteriorating Ethanol Margins as Corn Prices Skyrocket


Published on 2012-08-17 05:47:33 - Market Wire
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August 17, 2012 08:20 ET

Archer Daniels Midland and BioFuel Energy Facing Deteriorating Ethanol Margins as Corn Prices Skyrocket

Five Star Equities Provides Stock Research on Archer Daniels Midland and BioFuel Energy

NEW YORK, NY--(Marketwire - Aug 17, 2012) - Skyrocketing corn prices and lower gasoline demand in the U.S. has seen profits of ethanol producers drop drastically. Producers have begun to idle plants and/or slow production as a result. "Even the most profitable plants out there are barely breaking even in the current environment," said Matthew Farwell, a New York-based analyst for Imperial Capital LLC. Five Star Equities examines the outlook for companies in the Ethanol Industry and provides equity research on Archer Daniels Midland Company (NYSE: [ ADM ]) and BioFuel Energy Corp. (NASDAQ: [ BIOF ]).

Access to the full company reports can be found at:

[ www.FiveStarEquities.com/ADM ]

[ www.FiveStarEquities.com/BIOF ]

Ethanol producers have battled record high corn prices, and tight domestic supply. The drought in the Farm Belt has drove corn-futures to an all-time high in July. Prices have relaxed a bit since then but have still surged over 40 percent since early June. It is estimated that approximately 40 percent of the nation's corn output is consumed by the ethanol sector. Major producer Archer Daniels Midland recently stated that their ethanol margins had crumbled to a loss of over 20 cents per gallon.

Five Star Equities releases regular market updates on the Ethanol Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at [ www.FiveStarEquities.com ] and get exclusive access to our numerous stock reports and industry newsletters.

ADM delivers clean-burning ethanol to refiners through an expansive network of trucks, railcars, barges and terminals. The company makes ethanol from corn through an efficient process that also produces large amounts of animal feed. Bioproducts results for the quarter ended June 30, 2012 decreased $172 million to a loss of $61 million.

Biofuel Energy was founded in 2005 with initial production from two plants commencing in 2008. With both plants active, BioFuel Energy expects to produce 230 million gallons of fuel grade ethanol and approximately 720,000 tons of distiller grains annually.

Five Star Equities provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. Five Star Equities has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: [ www.FiveStarEquities.com/disclaimer ]