Monday, January 24, 2011

The Rising Issue of Ethanol Use


The use of ethanol as a blend with gasoline is consuming large amounts of corn.

From the WSJ:

"In 2001, only 7% of U.S. corn went for ethanol, or about 707 million bushels. By 2010, the ethanol share was 39.4%, or nearly five billion bushels out of total U.S. production of 12.45 billion bushels. Four of every 10 rows of corn now go to produce fuel for American cars or trucks, not food or feed.

Review & Outlook, 2011. Amber waves of ethanol. The Wall Street Journal, Jan. 22.

This development will surely contribute to food price inflation.

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