Friday, June 8, 2007

Soybean prices increase: cherchez le biofuel

"Soybeans fell from a 35-month high in Chicago on speculation that improved crop conditions in the United States would mean a bigger harvest this year than the government forecast last month.

An estimated 71 percent of the crop was in good or excellent condition, the U.S. Department of Agriculture said in its first assessment of the season. That was the highest initial rating since the assessments began in 1986. Prices had jumped as much as 40 percent in the past year on concern U.S. farmers would plant fewer soybeans in favor of corn."

And guess why they're planting corn? Yes, biofuels.

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