A typical line from conservatives is that ethanol is driving up the price of corn. This is probably a very difficult question to answer. It is not difficult to look up the price of corn and the production of ethanol, but would be a quick review of a product and industry that I do not know very much about…but what the hell…that’s what bloggers do.

I reviewed the prices of wheat and corn futures. Prices for both of these commodities has spiked since the middle of 2006. Although the dollar has weakened, it didn’t take a sharp downturn in 2006. It has been a gradual decline since about Feb 2002.

 

 My uneducated guess at this point is that corn prices are rising because of global demand for food. As our dollar decreases in value, the demand for American grown food will increase. This is good for American farmers….not so good for American eaters.

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