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VK2AAB > FOOD 24.07.06 00:54l 48 Lines 1909 Bytes #999 (0) @ WW
BID : 20776_VK2AAB
Read: GUEST
Subj: Want to Eat or Drive
Path: DB0FHN<DB0MRW<DK0WUE<7M3TJZ<ON0AR<ZL2BAU<ZL2ARN<VK2AAB
Sent: 060723/0644Z @:VK2AAB.#SYD.NSW.AUS.OC #:20776 [SYDNEY] FBB7.00i
From: VK2AAB@VK2AAB.#SYD.NSW.AUS.OC
To : FOOD@WW
Hello All,
The burgoning increase in ethanol production is starting to affect
the food processing industrys..
While this story relates to the cattle industry it is the third story
I have seen in the last week on the effect of ethanol production on food
production. The last one was on canola growers in Wisconsin and Nth Dakota.
The prices offered by the ethanol plants cannot be matched by the food
processors.
I think is just the start of these problems. It appears that there is a
large demand from Europe for bio-diesel.
Eat or drive ?
Watch this space.
73 Barry VK2AAB
Biofuels To Incite Grain Demand Shift
Today 7/18/2006 5:46:00 PM
Biofuels To Incite Grain Demand Shift
CHICAGO (Dow Jones)--The burgeoning biofuels market is soon to
spark a demand shift affecting grains and soy, one analyst said
Tuesday at the Dow Jones Indexes-AIG Mid-Year commodity outlook
event at the Chicago Board of Trade.
"This is going to have a tremendous dislocation on grain demand,"
said Dan Basse, President of AGResource Co.
Increased prices based will be based on the availability and
amount of biofuels over the next 12-14 months, he predicted.
In response to demand for biofuel crops, Basse expects corn to
rally above $4 per bushel over the next 12-16 months.
Soybeans are expected to reach $5.50-$6.00 per bushel in the same period.
Soyoil will increase around 35 cents to 45 cents per pound over the next
12-14 months, and wheat prices are expected to reach near $6.00 per bushel.
Crops such as corn and wheat can be used to make ethanol, while
soybeans - primarily soyoil - are used to make biodiesel.
"I fear we'll be ending up in somewhat of a food fight between the fuel
industry and the food industry," Basse said. He noted about two to three
ethanol plants begin operation in the U.S. each month.
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