Biodiesel Market signals for Alternative to Soy

As of June 13, 2007, according to the U.S. Department of Agriculture, the price of soybean oil needs to beno more than 34 cents per pound if the biodiesel industry is to make a profit, signaling the market for urgent investments in alternative sources of vegetable oils.

80 percent of the veggie oil being used at present for biodiesel comes from Soybeans, really showing us just how dependent this industry really is on the Iowa Soybean industry.

The trade for soybean oil is probably only going to increase according market speculators that know their game and the only way to get the price of biodiesel down to something reasonable is to find an alternative source of oil that is ecologically neutral and can be produced in abundance within our national boarders for a decent price.

Soybeans apparently just are not cutting it! By July of 2008 the prices on Soybean oil should be around 38 cents a pound according to Chicago Board of Trade this week and that is simply unacceptable for the current rate of production in eco-friendly fuel alternatives.

Only a handful of other industries have taken such organic growth in our nations economy in the last century, and from Mondays report the CBT reveals a U.S. consumption of 202.54 million pounds in soybean oil for April of 2007, as opposed to 96.28 million in April of 2006.

Biodiesel is in demand and the soybean market would need to be twice the size of the entire continental U.S. to support our current demand on all motorized vehicles.

High prices like these are going to make things difficult for our people to free themselves from unwanted dependence on foreign oil and polluting CO2 cycles that have no place of return.

Our planet needs more green-reserves like the Atlantic Rainforests in South America and naturally occurring algae found in the oceans. Biodiesel will neutralize or CO2 output almost entirely without messing with our way of life.

Biodiesel projects in the U.S. are going to be hindered because of Soybean Oil prices, according to the Iowa Renewable Fuels Association as of the four projects that have been in the planning stages since late last year, only one has been able to move forward due to issues with profitability.

We are feeling this in a major way, and it is all around us. Solutions need to be found soon, and the American people need to get up the courage to invest in themselves for a change.

The article Widescale Biodiesel Production from Algae (Briggs, Michael) for example gives us an idea of where we need to invest, but most certainly, this is the stage we are in, an unless something is done soon; the market wont advance fast enough to deal with the demand in the next few years to come.