Food prices: no biofuel to blame
Prices of major grains and oilseeds such as corn, wheat, soyabeans, and palm oil that are used to make biofuels are tumbling, indicating green fuels have played virtually no role in the recent global surge in food prices.
Corn and soyabeans have lost more than half of their value, whereas wheat now costs 55% less than at its highpoint in March of this year. Canola fell from a high of $730 (568.7 Euro's) a tonne earlier this year to $400/tonne in late October.
Prices of other internationally-traded farm products are following the same downward slope. Both cocoa and coffee have lost more than 40%, and cotton has experienced a similar trend.
Major agricultural commodities are seeing dramatic drops, disproving the opinions of food-versus-fuel critics.
Heavy demand for corn from ethanol producers was sighted as a significant source of corn futures to record highs in June, but since then the sharp decline of corn along with other commodities shows that this was mistaken.
Corn is down about 50% from its record high in June, even as the amount of the grain used to produce the renewable fuel in the US remained the same.
Corn and soyabeans have lost more than half of their value, whereas wheat now costs 55% less than at its highpoint in March of this year. Canola fell from a high of $730 (568.7 Euro's) a tonne earlier this year to $400/tonne in late October.
Prices of other internationally-traded farm products are following the same downward slope. Both cocoa and coffee have lost more than 40%, and cotton has experienced a similar trend.
Major agricultural commodities are seeing dramatic drops, disproving the opinions of food-versus-fuel critics.
Heavy demand for corn from ethanol producers was sighted as a significant source of corn futures to record highs in June, but since then the sharp decline of corn along with other commodities shows that this was mistaken.
Corn is down about 50% from its record high in June, even as the amount of the grain used to produce the renewable fuel in the US remained the same.
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