Corn Holed

From Shoe box at No Runny Eggs


Some good information on the status of corn prices. How high will corn prices go?

Thanks Shoe Box

"by Shoebox @ 5:19 on June 17, 2008. Filed under Corn-a-hole.

I wrote yesterday about the likelihood of a dramatic increase in corn prices due to the damage done by the floods.

I found this article today, where a commodities analyst is claiming that due to the crop loss from the flood, corn could go to $16/bushel.

What????? It wasn’t that long ago that corn at $4/bushel was nearly laughable. Today, corn futures have moved to over $7.90/bushel.

Well, I got to thinking….we use some of this corn to make ethanol. Most states require an ethanol blend for automobile fuel. What’s the impact of increasing corn costs going to be on our fuel costs?

To date, the financial impact of adding ethanol to the fuel has been a benefit to consumers. Even today, ethanol sells (OK, I’m not mucking this with all the subsidies it gets that we pay for via other taxes…let’s just keep this simple) for under $2.90/gallon. The easy math says that if your average fuel is around $4/gallon and ethanol is less than that, then blending the ethanol is having some impact of bringing the total price down on a gallon of fuel.

Now let me scare you:" No Runny Eggs » Blog Archive » The Next Fuel Shoe To Drop?