Source: Renewable Fuels Association


A newly released report from the Development Prospects Group at the World Bank, conludes that "... the effect of biofuels on food prices has not been as large as originally thought, but that the use of commodities by financial investors (the so-called "financialization of commodities") may have been partly responsible for the 2007/08 spike." This is the same World Bank whose "leaked" report in 2008 erroneously blamed biofuels for 75 percent of the commodity price spike.


John Baffes and Tassos Haniotis, authors of the report entitled "Placing the 2006/08 Commodity Price Boom into Perspective," argue that energy prices, and as noted above speculation, played significant roles in the non-energy commodity price spikes seen in the recent past.


Original news release