Top ethanol company Green Plains Inc. is suing Archer Daniels Midland (ADM), accusing the global trader of manipulating biofuel prices to gain an advantage on the derivatives market.
The class action suit, which is seeking unspecified damages, was filed in the U.S. District Court of Nebraska, also claiming that ADM leadership knew of the alleged manipulation.
The complaint specifies that ADM was aggressively selling ethanol on the cash market, timed to occur 30 minutes prior to the close of the trading day at the Agro terminal outside of Chicago. Green Plains also contends that ADM crowded the terminal with its barges to block competitors and to influence the spot price and futures ethanol markets.
A similar suit was filed by Swiss company AOT Holding AG in an Illinois federal court in September 2019 seeking up to $6.3 million in damages.
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