Biomass economics relies on the basic laws of supply and demand. When there is an abundance of a material, such as solid waste or manure, the price is low or negative. If the feedstock is scarce like food-grade vegetable oil, the price is really high. Until recently, traditional supply and demand economics have, for the most part, also governed pricing for commodities like corn and crude oil. Cash markets can be very volatile. News of natural disasters, shifts in government policy and other daily events can cause radical shifts in the market price. Cash markets are in real time. They define the transaction. Rising energy prices are influencing everything from gasoline to compost feedstocks. There are many legitimate factors that have caused energy prices to rise.
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