New Study On Ethanol & Corn Prices

According to the findings of Kansas State University economists Daniel O’Brien and Mike Woolverton, prices paid for corn to make ethanol varies significantly across the country, USAgNet reports.

The report reflects prices for corn around the Cornbelt since October of 2006, with much of that time spent in periods of volatility as the ethanol demand substantially increased. The study looked at prices in IL, IN, IA, MN, NE and SD where costs in 2007 were in the $3-$4 range, peaked at $7 in June of 2008, and have returned to the $3-$4 range. The multi-state region averaged $3.96 per bushel, but ranged from $6.93 to $2.40 during the 167 weeks that prices were analyzed.

The economists conclude that corn prices in IL and IA have increased in comparison to the region, while prices in KS, SD, and NE have declined in comparison. As a result they believe the development of the industry will have a part in reshaping the structure of agriculture for years to come.