Kerr says soybean prices could double in '07

Kevin Kerr, editor of Resource Trader Alert, said in a press release this morning that soybean prices could double this year.

"Increasing pressure on ethanol-producing corn industries could easily put enough strain on soybean acreage to drive prices up," he said.

Bean buyers have already started amassing contracts, Kerr recently wrote in his newsletter. "If farmers opt to grow corn for the obvious, immediate ethanol profits, soybean production will drop and prices could soar," he said.

According to recent surveys - Kerr's press release noted - U.S. farmers have already begun to sow the smallest soybean crop since 1996.

"Fund managers will diversify assets out of stocks and bonds next year, gambling that grains and other agricultural products will pay off big like they did for us last year," he said.