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Politics : Politics for Pros- moderated

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To: DMaA who wrote (164571)	4/26/2006 6:18:51 PM
From: Ish	Read Replies (1) of 793999

<<So if corn production ballooned to supply the demand for ethanol feed, you could see the price collapse for the other byproducts from a vast over supply. No?>> No. Fewer acres of corn will be planted this year than last year. That's from the government reports. It's not like we have a shortage of corn on hand, going into next harvest we'll have something close to 1 billion extra bushels in storage. If the price of other byproducts drops a little then the demand for those byproducts increases. ie. the price of feed drops, more cattle, hogs and poultry get raised.

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