- Green Plains (GPRE +1.1%) is suing Archer Daniels Midland (ADM +1.1%), accusing the grain trader of manipulating the price of ethanol to profit from its positions in the derivatives market.
- According to the proposed class action with the U.S. District Court of Nebraska, ADM aggressively sold ethanol on the cash market and timing such selling 30 minutes ahead of the close of the trading day.
- Green Plains also accuses ADM of flooding the terminal with its barges, to choke off competitors’ supplies and influence the price of spot and futures ethanol markets.
- ADM "knew that it would take hard-earned money out of the pockets of other ethanol producers by depressing prices at the Argo Terminal, hurting the producers and imposing downstream pain on corn farmers and cooperatives," according to the complaint.