Food vs Fuel
The world turned towards the US on the topic of food vs energy, a debate that is going strong as a primary cereal for food, feed and fuel production is growing thin.
The FT reports [registering may be required to view in full]:
UN urges US to cut ethanol production
- Corn, soyabean and wheat prices have surged between 50 and 30 per cent since June after the US endured the hottest July since temperature records began 117 years ago.
- As America exports nearly half the world’s corn, a third of the world’s soyabeans and up to a fifth of the world’s wheat, changes in US supply have a significant impact on global agricultural markets.
However, the matter is not so simple, as suddenly reducing alternative energy sources may have a negative impact on oil prices and subsequently even greater economical consequences than the higher cereal prices currently experienced. However, the already high price of corn may have a natural impeding effect on the production of ethanol.
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