Biofuels have become an important source of demand for many agriculturals over the past decade. In this Commodities Watch, we argue that concerns about the environment and the diversion of food towards fuel production, less government support and a greater penetration of electric vehicles mean that crop-based biofuels are set to fall out of favour in the longer term. This will remove a major source of demand for agricultural commodities such as corn, sugar and palm oil.
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