Today in Biofuels Opinion: “They’ll hit their first commodity cycle, the margins will compress…and the investors who bought and held post IPO will get crushed.”

In Italy, the UN special Rapporteur on the Right to Food, Olivier De Schutter, said that countries opposed to biofuels had backed down from a fight at the UN Food Summit because they were afraid that an all-out war on biofuels would have killed an agreement on fighting world hunger. De Schutter told Reuters that “The final declaration says only one thing: we need to have a continued international dialogue on this issue. That’s important in one way. It shows that agrofuels are now becoming part of the international agenda and that states may not act unilaterally in this domain.” he told Reuters.

Neal Dikeman in Seeking Alppha: “The next wave of venture backed ethanol companies, mostly cellulosic, are beginning to break ground on pilot plants. And it is likely that they will be sold to the market the same way, as high growth stocks based on great technology and macro conditions justifying stratospheric PEs on unsustainable margins. Then they’ll hit their first commodity cycle, the margins will compress, the bloom will come off the rose, the multiples will come down, and the investors who bought and held post IPO will get crushed.”

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