VeraSun Cancels BioEnergy Contracts

VeraSun Energy said nearly all contracts to buy corn for its U.S. BioEnergy ethanol plants through Jan. 15, 2009, would be canceled, Farm Progress reports. During a bankruptcy hearing, VeraSun lawyer Felicia Perlman said contracts for the plant in Welcome, DE, would be canceled through Jan. 31, 2009.
However, the Marion, SD, plant is not included in the planned cancellations. The eight U.S. BioEnergy plants were acquired by VeraSun earlier this year. The bankruptcy court approved a measure that would allow VeraSun to cancel corn contracts 10 business days before delivery. Last month VeraSun decided not to honor corn purchasing contracts at several locations, instead offering spot market prices to producers. ♦