Report: Ethanol Helping Drive Corn Prices

Sioux Falls, South Dakota [The Associated Press] Ethanol demand is expected to help drive up the price of corn by 10 to 30 percent this year, according to government estimates. Nationally, prices of $2.25 to $2.65 a bushel are forecast, although South Dakota farmers will not see those exact prices because of “basis,” a downward adjustment in price that depends on location, said Lisa Richardson, executive director of the South Dakota Corn Growers Association. … The U.S. Department of Agriculture projects that corn use for ethanol will increase by 34 percent in the 2006-2007 season, to 2.15 billion bushels. The numbers come from the department’s World Agricultural Supply and Demand Estimates. …

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