Australia says wheat prices hard to sustain because not used for biofuel

Date: March 1, 2011

Wheat is the most vulnerable of the major crop to price falls in 2011-12 - and thereafter -  thanks to its small use in making biofuels, Australian officials said.

My comment - I am interpreting the above as follows: "wheat is the most vulnerable crop as it is left largely into the hands of the market (except for EU-27 wheat ethanol demand)". It appears that Biofuel subsidies have distorted commodity markets by introducing mandated use and hence reduced the effects on prices of nomal fluctuations caused by climate or demand. Development of 2nd generation ethanol feedstocks is all the more urgent.

Link: http://www.agrimoney.com/news/lack-of-biofuels-use-leaves-wheat-price-vulnerable--2878.html