Ethanol vs. food debate growing

[BGH]

What people don't seem to realize is that corn, wheat are trading on exchanges just like oil.

The actual price of wheat has gone up. And its gone up a lot. So don't tell me its oil when its only the futures market that has hit the highs. Also last summer many analysts predicted that the price of food was going to increase simply because the value it traded at increased so much. All the wheat products you bought where produced last summer.

[Bvonscott]

Why do they keep focusing on corn!

It is not the only source of ethanol. And won't certainly be a major player in time!

[M_RABID]

Originally Posted by mjd1001

It isn't as simple as you make it out to be. Yes, some is converted for livestock...but what is converted for livestock is much less than would be there for livestock if it wasn't used for Ethanol. Also, the ethanol producing/refining facilities are not right next to where the livestock are...there are transport costs, logistical issues..etc that are greater than if it were not used for ethanol. Also, the rise in fuel prices is not only because of livestock feed...it is also for corn that can be used for human consumption..or if not for human consumption directly...to be 'refined' for other food products for human consumption. Finally, I don't think we are saying you don't have a valid point...just that you can't ignore that Ethanol is a valuable part of our energy issues/solutions going forward...but all we are doing is pointing out some issues that show it is not the best solution....or a 'cure all' solution....your responses to our points almost make me think you are an ethanol lobbyist. I accept your points that Ethanol is a wonderful thing...it just seems that you don't want to accept our points (and the point of the article, as evidence by your response saying it is 'fear mongering at it's finest) that corn based ethanol can be very problematic for many reaons at the level we are producing it.

And this is why the celulostic ethonal plant under construction in Oklahoma exists. 15000 pounds of solid waste PER DAY will be 'harvested' from landfills etc. to produce fuel. Switch grass will also be used this year. How many subsidized farms are STILL being paid to 'not grow corn'? GROW SWITCH GRASS! The price of corn is being affected more from transportation costs due to rediculous oil prices than from any strain on the food supply. How many billions of dollars in profit will the oil companies show this year? And they say they are not gouging us. My ass.

[NfamousZ24]

Originally Posted by BGH

What people don't seem to realize is that corn, wheat are trading on exchanges just like oil.

The actual price of wheat has gone up. And its gone up a lot. So don't tell me its oil when its only the futures market that has hit the highs. Also last summer many analysts predicted that the price of food was going to increase simply because the value it traded at increased so much. All the wheat products you bought where produced last summer.

Yes the speculators are trying to make Fast Money any way they can. They are making it on the Oil markets and they are making money now on the Food Markets. Please get November here so the elections can be overwith and the economy get back together. All we need is for the speculators to make their fast money in corparations and not commodities.

[BGH]

Originally Posted by NfamousZ24

Yes the speculators are trying to make Fast Money any way they can. They are making it on the Oil markets and they are making money now on the Food Markets. Please get November here so the elections can be overwith and the economy get back together. All we need is for the speculators to make their fast money in corparations and not commodities.

Not everything is just speculation. It's often based on facts. People where talking about food prices going up well before last summer. A few things gave this a way. Greater demand for potash and the governments new subsidies to ethanol production. Prices of food where going to go up regardless of biofuels. But the subsidies given to produce them have forced the price higher and faster then previously thought.

[Klay]

Originally Posted by BGH

Not everything is just speculation. It's often based on facts. People where talking about food prices going up well before last summer. A few things gave this a way. Greater demand for potash and the governments new subsidies to ethanol production. Prices of food where going to go up regardless of biofuels. But the subsidies given to produce them have forced the price higher and faster then previously thought.

I have trouble believing your statement when the government pays farmers to NOT grow more crops. IF the farmers actually grew everything they potentially could and then the government gave them subsidies to use some of their land for corn (for ethanol), then you would be correct.