The laws of economics suggest that if feedstock prices remain...

The laws of economics suggest that if feedstock prices remain high for too long then biofuels producers will go out of business, demand will drop, farmers will overproduce and feedstock prices will fall again. If the demand was largely speculative to begin with then that will happen sooner rather than later.

AAE say that 60% of soy contracts are currently held by speculators, the long term average being 20%.

If that is a case then this pairs trade (it is like being long oil and short soy) could be quite a good one.

I grabbed a few today anyway as I believe the price is near rock bottom and if all else fails they could always pick up some iron ore tenements out west.