Rising demand and Midwest flooding have driven corn prices from $2/bushel in 2006 to more than $7/bushel today. And there is little relief in sight. F
Flooding in many parts of the Midwest has destroyed a portion of the country's corn crop. June's floods destroyed almost 10 percent of the Indiana's corn yield alone.
Now, Purdue Agricultural Economist Chris Hurt said, ethanol producers are struggling. "By far record high prices and what we are actually seeing is that those margins for the ethanol producers have fallen into negative territory with these extremely high corn prices."
The U.s. supplies two-thirds of the world's corn supply. Naturally, there can be no unanticipated consequences from diverting so much of that supply to ethanol. And of course the weather will cooperate perfectly. Whats the problem?