Farmers Fear Ethanol Demand Could Bump Up Corn Prices

US - Ethanol industry demands could cause escalating prices for dairy and livestock producers.
calendar icon 5 April 2007
clock icon 1 minute read

Corn production is expected to increase, say analysts, but demand still may not be met, affecting everything from feed prices to prices at the grocery store.

Corn prices are holding steady around the $4 mark, according to the May futures. At one point, the price was up to $4.50 a bushel. Since that time, the market has pulled back, which is common, said Tana Williams, commodities broker for Southwest Commodities in Clovis.

The dairy industry could be greatly affected if the cost of corn continues to rise, according to extension dairy specialist Robert Hagevoort. Rising corn prices also affect the price of cotton and soybeans, which are utilized by dairies for feed, he said.

"One thing leads to another and cost production increases because of everything going up," Hagevoort said.

Local farmer Brent Corbin said as corn prices climb, so will the price of silage used by the dairies. For this area, he predicts that a few more acres of corn will be planted, but that it won't be a significant amount, he said. For the long haul, he expects that many of the farmers will continue to grow and harvest silage for the local dairies.

Source: Red Orbit
© 2000 - 2024 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.