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Saturday, March 31, 2007

Ramping Up Ethanol Production

Farmers are rapidly jumping on the bandwagon to chase after ethanol sales.  The increase in the price of oil is made it much more sustainable to grow corn and sell it for ethanol production.  This has driven up the volume of corn significantly enabling farmers to make more selling corn and they have other crops in the past.

And just like farmers have done many times in the future there all chasing after the same extra dollar and planting more corn so much more corn that it drove future prices down on corn this week as the numbers started to come out indicating just how much extra corn farmers are going to produce.

They are actually planning on producing 2 1/2 million more acres of corn than was predicted in that sent corn futures down by 5% on Friday.