Friday, July 15, 2011

Ethanol Now Consumes More Corn Than For Animal Feed for First Time, Corn Prices Reach Record High

Great post by Mark Perry of "Carpe Diem."
"Financial Times -- "U.S. ethanol refiners are consuming more domestic corn than livestock and poultry farmers for the first time, underscoring how a government-supported biofuels industry has contributed to surging grain demand.

The U.S. Department of Agriculture estimated that in the year to August 31 ethanol producers will have consumed 5.05 billion bushels of corn, or more than 40% of last year’s harvest. Animal feed and residual demand accounted for 5 billion bushels.""

He has a chart which shows that the price of a bushel of corn has risen from about $2 at the start of 2005 to over $6 now.

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