Audio – Biodiesel futures 3-5 years away?
A Chicago Board of Trade official said on Tuesday he would expect that biodiesel could have its own futures contract in 3-5 years.
“But these things aren’t necessarily linear, either. government incentives could come into that market and it could expand much quicker than we think,” said Dave Lehman, managing director and chief economist, business development at CBOT.
He added that the distiller’s dry grain market could see a futures contract even before biodiesel. Distiller’s dry grain is a by-product of corn-based ethanol production.