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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Maurice Winn who wrote (54191)	10/13/2004 4:23:22 AM
From: Snowshoe	Read Replies (2) of 74559

Soybeans are a terrific source for biodiesel, and can also be used as a feedstock for some plastics. And I assume that the fertilizer requirements are lower than for corn, since legumes can pull nitrogen out of the atmosphere via nitrogen-fixing bacteria. And you can produce them near the consumer, rather than transporting oil halfway around the world. The state of Minnesota has a new law requiring that a percentage of biodiesel be added to all diesel fuel sold in the state. The law was contingent upon the construction of adequate biodiesel production facilities within the state borders. However, the plant was put on hold earlier this year due to the high price of soybeans. I expect they'll go ahead with the plant now that the price has dropped.

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