Soybean prices could double in 2007 thanks to corn ethanol
Kerr's statement is based on the fact (inferred from "recent surveys") that American farmers will be planting the smallest crop of soybean this year since 1996. A drop in supply means an increase in price. And the reason for the drop in supply is that many farmers are shifting soy fields over to higher-value corn crops to feed the ethanol market. Kerr says soybean prices could double this year, and that bean buyers are already amassing contracts.
I'm not against ethanol, especially cellulosic ethanol, but if the price of my tofu goes up so flex-fuel SUV drivers can feel greener, then that's a problem.
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