Friday, August 31, 2007

Biodiesel to drive up the price of cooking oil

The popularity of biodiesel--made from vegetable matter intead of fossil fuels--"will tighten the supply of vegetable oils," William Camp, executive vice president of Archer Daniels Midland, said during a presentation at the ThinkEquity Partners Growth Conference in San Francisco.

...Vegetable oil prices have declined in the past three weeks because projected demand for biodiesel has come down from the speculative levels achieved a few weeks ago. Nonetheless, lowered levels of projected demand still seem destined to make supply difficult.

...Archer Daniels Midland has already installed capacity to produce 300 million gallons of biodiesel in Europe and 135 million gallons in the U.S. It plans to open a plant to turn soybeans into biodiesel in Missouri and one to turn canola oil into biodiesel in North Dakota.

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