If the demand for corn increases due to its use as an alternative energy source,?

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what will happen to the supply of corn's substitute such as soybean? What will happen to the price of corn oil? How does the price elasticity of demand for corn oil influence the ...show more
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I watched the commodity prices rise on a whole during the big push for corn as an alternative fuel. Its been a dumb route for enviormentalists to take, due to the riots and starvation it caused in some countries as the cost of living increased on this food staple, but i'm hoping they have learned form these unintended consequences.
We have seen some technologies surface where bio-diesel can be made from waste, garbage and my favorite...Algae. Algae is one of the fastest growing plants we have and its limitedly used for nutrients. I came across one company (Valcent) that claims they have a working bio-reactor and that it seems feasible to change the formula of this algae to develope different types of bio diesel that can be used for varying type of vehicles......even airplanes.
I've also seen Exxon suggest they are looking into it from commercials. So the alternative idea's are surfacing, we just need them to be developed, refined and brought to market without governmental politics as usual messing it up or without the usual lying enviormentalists claiming things are better than they really are. Past that we just need the infrastructure to be set up so that the Citizens benefit from this move and therefore the nation.
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  • Martin answered 4 years ago
    There was a big impact to the corn oil industry when the flex fuels hit the market but things should be leveling out now.

    The good news is that there are multiple sources for "cellulosic ethanol" other than corn. Many companies are turning to switch-grass which is fast growing and easy to harvest, it also means less impact on food industries.

    Check out our article on E85 flex fuel for more info;


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  • Marcia answered 4 years ago
    In the back of my mind, I wonder just where the US corn industry's lobbyists played in the decision to move towards corn....Still, the move towards using food crop products, and the ground that they are grown in, for energy generation is creating predictable results.

    I'm not exactly sure that the soybean is an adequate food crop substitute for corn as the food production industry stands today. It is becoming increasingly difficult to find food products that do not contain a corn product; even chicken in the meat counter and a foam tray is hard to find without injected water, flavorings, and corn sweetener products. Even if it is possible to substitute soy for corn in our food chain, the systems and production facilities are not equip ed for the substitution.
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