NumbersGuy

Latin American Selloff Offers Investment Bargains

Argentina was counting on soy prices staying high. It imports oil/diesel fuel from abroad. It has no oil for export. The point is valid, it's just a different commodity they were counting on.

Food and Fuel: Brazil Breaks New Records

The problem is factoring the effect this may have on climate change. (And yes, I am taking it as a given - I'm going with the vast majority of the world's scientists, not the small group that denies it.)

To do a full economic analysis of that problem, we would first need to determine how much rain forest is being destroyed to make room for new crops. Then you have to determine how much carbon is lost, net, as a result of that deforestation and, assuming you believe the market cost of carbon, factor that into the analysis.

Many would argue (with some reason at this point) that the carbon market doesn't really reflect the reality of the climate change problem. In that case you can at least assess whether biofuels are helping alleviate or are making worst that problem.

But, in the end, I guess that's a separate question and doesn't really effect the fuels or food debate.