Ethanol Production and Corn Prices

The increased emphasis on ethanol production in the United States as an alternative fuel is having a significant impact on corn supplies and prices. Corn prices that were in the $2.00 per bushel range during 2005, are expected to average around $3.50 per bushel for 2006. Corn prices for 2008 may even exceed the $4.00 per bushel level unless pressures on inventories can be accounted for.