Goldman Sachs: The Expansion of Biofuels Strengthens the "Energy Attribute" of Agricultural Products, Crude Oil is Becoming a New Variable in Grain Prices

Goldman Sachs pointed out in its latest report on biofuels that with the expansion of the global biofuel industry and countries increasingly raising mandatory blending ratios, more and more crops are shifting from food and feed use to fuel production, making energy prices an increasingly important variable in agricultural product pricing. The bank predicts that by 2026, global biofuel production will reach approximately 3.5 million barrels per day, with about 95% used for transportation. The United States, Brazil, and the European Union together contribute about 80% of global production.