In the Netherlands, Abengoa’s financial woes may weigh on grain prices if plants in Europe begin slowing down or farmers refuse to sell wheat and corn to the company for fear of non-payment, potentially adding up to 2 million extra tons to the European grain market that is already suffering from five-year lows. The EU ethanol industry only consumed about 3% of last year’s grain harvest, about 10.6 million metric tons, so although Abengoa represents a significant portion of grain consumption for ethanol, ethanol is more of an overflow market for grain rather than a main demand center.
The mothballing of Ensus in the UK earlier this year led to a drop in demand of 300,000 tons compared to when the plant was online, forcing some farmers to sell their grain at a discount.
Category: Producer News
This articles was originally posted at: http://www.biofuelsdigest.com/bdigest/2015/12/09/abengoa-shutdown-would-release-2-million-tons-of-grain-onto-eu-market/ on