Next year, twenty percent of the corn grown in the United States will be turned into ethanol
, according to this article from Reuters
. The increase in ethanol production (ethanol will take 2.15 billion bushels of this year's corn crop as opposed to 1.6 billion bushels from last year) will also drive up price. The expected price of $3 a bushel will mean the highest season-average price in a decade, compounded by a reduction of the corn surplus in half by mid-2007. The 2.15 billion bushels of corn will make 6.5 billion gallons of ethanol. Joining corn in the upswing, soy and wheat futures were also up.