Biofuel: April 2008 Archives

Volatility, Uncertainty and...

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In a recent Illative Blog posting, Richard Gray asked the question "Is this current price peak in grain prices just another blip in the commodity cycle or has something changed?" He then goes on to argue that the high prices might last longer than has usually been the case because of three factors: (1) growing economies in China and India; (2) Hubbert's Peak; and (3) U.S. biofuel policy. The purpose of this posting is to look at what might be in store for agriculture if the current situation of high grain demand and low stocks prevails for some period of time.

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