Monday, February 28, 2011

Never Mind the Higher Oil Prices

According to the US Department of Agriculture, the price of corn is up 88%, and wheat is up 76%, from 12 months ago. Ethanol production consumes 40% of US corn, so I expect corn prices to rise, though not necessarily as much as it has, but rise regardlessly. But wheat?

3 comments:

OkiHwn said...

Export the corn for the rest of the world. Ethanol...what a ploy!

Mokihana said...

We keep paying higher gas prices and the gas companies keep getting richer.

RONW said...

Nate- the food experts have been against large scale ethanol production from the start, and have warned about this very scenario. But I like almost everybody else took it for granted, "corn" we got too much corn.

Mokihana- yes, but we should invest in petroleum stocks. Win, win. Don't know about your neck of the woods, but gas prices here have risen sharply lately ($3.78/gal. regular). The stupid thing about this, is that speculation alone is driving up the prices. Supply hasn't been affected by the events in Egypt, Libya, etc. We should throw our own uprising.