Corn prices going up

http://finance.yahoo.com/news/u-drought ... 25z;_ylv=3

With corn prices going up and the UN demanding the US cut Ethanol production, wonder what Obama is going to do. Listen to the UN, or go for the Iowa electoral votes?

"U.S. drought drives up food prices worldwide....The drought that's drying up the Heartland isn't just an American problem. It's causing food prices to surge worldwide.

And it could get worse."

(And its Obama's fault BTW

6% increase in food prices last month according to the UN. That is huge. Partly speculators but also real fears that the American drought will cut food surpluses.

The trouble with Ethanol production is it is mandated for about 10% of our gasoline, can't cut it too much or we have to import from Brazil.

LOL wrote: The trouble with Ethanol production is it is mandated for about 10% of our gasoline, can't cut it too much or we have to import from Brazil.

Now that there is some irony.

Bright side? High fructose corn syrup might get so expensive that food companies might have to start using actual sugar. Throwback Mountain Dew FTW!

corn for fuel is different that corn for food.
Just drive out east to Brush go south and see the signs designating food consumption corn and fuel use corn.
Where we pheasant hunt the farmers told us we don't want to eat the fuel stuff.

Must taste bad or has less sugar or something.

Martin Ent Inc wrote: corn for fuel is different that corn for food.
Just drive out east to Brush go south and see the signs designating food consumption corn and fuel use corn.
Where we pheasant hunt the farmers told us we don't want to eat the fuel stuff.

Must taste bad or has less sugar or something.

An acre planted for fuel corn is an acre not planted for food or feed corn.

The Renewable Fuel Standard, enacted in 2005 and then significantly expanded in 2007, requires that 13.2 billion gallons of corn starch-derived biofuel be produced in 2012. The intent was to reduce both greenhouse gas emissions blamed for climate change and dependence on foreign oil.

One consequence is that 40 percent of the nation's corn crop now goes to ethanol producers, compared with 36 percent for feed. The rest is divided between processed food and exports. Critics say ethanol also is a big factor in the price of a bushel of corn going from an average $2.15 a bushel in the 1997-2006 period to more than $8 today.


http://www.ibj.com/livestock-farmers-st ... icle/35989

BB. The real reason for the ethanol program was to push up corn prices. It has succeeded.

FredHayek wrote: BB. The real reason for the ethanol program was to push up corn prices. It has succeeded.

And fuel prices in general.