Well, I've gotten the following responses to my
question:
1.  soybean oil is goign up in price.
2.  The dollar is coming down (presumably making
brazilian etc. soybean oil more costly).
3.  Producers are price gouging because the market
will bear it.

I had a look at the chicago board of trade and indeed
soybean oil prices (contracts, anyway) are high - they
have been rising steadily for the past few years.  And
it is also true that the dollar is coming down.

Here's my question though.  I thought that US virgin
oil biodiesel production was largely a bi-product of
the soap industry.  If true, I would expect this
by-product to be somewhat insulated from price shocks.

Since I have no idea what the market is like for
biodiesel, I don't know what demand is doing. 
Growing, presumably, since a number of big plants are
coming on line in California.  But then, I would hope
to see a fall in the price once that production hits
the market.




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