Soybean prices could double in 2007 thanks to corn ethanol

If the lottery is not the way you want to invest in biofuels, why not head over to the stock market? Investment writer Kevin Kerr says that it's soybeans that are "poised to make investors rich in 2007" (it's the title of this recent press release).
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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