Agency Report Shows Jump in Corn Prices (ethanol)

[jpak]

http://www.lasvegassun.com/sunbin/stories/bw-exec/2006/dec/11/121101218.html

WASHINGTON (AP) - Farmers are getting the best price for corn in more than a decade amid strong demand for ethanol and feed, the Agriculture Department reported Monday.

Average corn prices for the year were forecast at $2.90 to $3.30 a bushel, up 10 cents from last month's estimate, according to the monthly crop report.

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The production forecast was unchanged at 10.7 billion bushels of corn, down from last year's 11.1 billion bushels. The nation's ethanol fuel plants are expected to use about 20 percent of the corn crop, and exports should consume roughly the same share.

Analysts also left the forecast unchanged for soybean production, predicting 3.2 billion bushels, up from about 3 billion bushels last year.

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[4dsc]

1. Can you say higher food prices!!

EOM!!

[all.of.me]

2. cars and people's bellies will be competing for the same product.

in Plan B 2.0, this was one issue, that there could be a food shortage to fuel cars. but i haven't finished the book to see what the solutions are!