Can Biofuels Bottom?

In the universe of absolutely battered “green” stocks (See: For Green Energy Investors, a Particularly Tough Ride), biofuels have been among the worst. Falling prices and oversupply led to an industry-wide slump as ethanol prices sank along with other fuels, while being squeezed at the same time by a smaller drop in prices for crops used to make the stuff.

The damaged caused a few analysts to question the future of the entire ethanol industry. Happily, a few early signs are appearing that the floor might be in. Today Merrill Lynch is out with a report predicting a possible surge in ethanol prices next year as demand continues, oil prices rise and grain prices soften under the weight of a global recession.

US News & World Report