Sunday, October 14, 2007


An increased demand for corn used in ethanol production in the US, has been blamed for rising corn prices. Ironically, as corn prices have come off their recent highs, and crude oil prices surge to new highs, ethanol prices have been down sharply.
A possible ethanol glut as new capacities come on stream, and high prices of corn relative to a few years ago, has taken its toll on the US Ethanol industry.

Arguments that ethanol is not as environmentally efficient as it claims to be, and rising food crop prices heading into an election year, have led to sharp corrections in the stock prices of ethanol producers.

No comments: