Seventy bucks a barrel for crude oil is the new norm, and the high price is driving interest in alternative energy sources on the trading floor as well as the gas pump. On the Chicago Board of Trade, a Reuters commentary says, soy oil, a byproduct from turning soybeans into animal feed, is looking more and more like a safe bet for future profits.
About 90 percent of U.S. biodiesel comes from soy oil, and since demand for biodiesel will increase in the coming years, that means demand for soy oil will increase. Soy oil futures were selling a pound of soy oil for 26.12 cents in late April, a nine-month high. If the National Biodiesel Board's prediction that biodiesel production in 2006 will be double that of 2005 comes to pass, those who buy now may reap the benefits later.
[Source: Reuters]
About 90 percent of U.S. biodiesel comes from soy oil, and since demand for biodiesel will increase in the coming years, that means demand for soy oil will increase. Soy oil futures were selling a pound of soy oil for 26.12 cents in late April, a nine-month high. If the National Biodiesel Board's prediction that biodiesel production in 2006 will be double that of 2005 comes to pass, those who buy now may reap the benefits later.
[Source: Reuters]
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