- May 16, 2006
Corn business booming thanks to need for ethanol fuel
Corn production is expected to go up 34 percent to 2.15 billion bushels, thanks to an increase in interest in ethanol, a fuel based on the plant. The bad news is that as demand has gone up, so has the crop's price, from $2.25-$2.65 a bushel, up from $1.95 to $2.05 last year. The amount of corn feeding the ethanol craze is 20 percent, up from just 5 percent a few years ago. Likewise, the demand for soybeans has gone up as well, thanks to an increased interest in soybean-based diesel.