Friday, August 10

U.S. Corn Production Down Due to Drought--Ethanol Production Criticized

Following-up Tuesday's post regarding extreme temperatures: Corn production in the United States is down significantly because of this summer's high heat and lack of precipitation.
"On Friday, the U.S. Department of Agriculture cut its estimate for the corn crop by nearly 17% and raised the upper end of its price forecast by 39% to almost $9 a bushel. ...
"The drought has some in the U.S. clamoring for the Environmental Protection Agency to relax its ethanol production mandates. Currently about 30% of U.S. corn is diverted to ethanol production and critics say the policy drives up corn prices." 
Amid drought, USDA cuts corn crop estimate to 17-year low (LA Times)