Higher ethanol mandate may not buoy U.S. corn prices

Reuters
Tue Mar 10, 2009 12:46pm EDT
By Sam Nelson - Analysis

CHICAGO (Reuters) - The Obama administration's call this week for an increase in the amount of ethanol to be used in gasoline in the United States is a positive sign for corn growers but it probably will not boost seedings or corn prices this year.

"It's pretty good news for corn growers and will at least keep farmers committed to corn," said Gavin Maguire, analyst for Ehedger.

However, for corn prices and plantings to get a big boost, it would take better exports and increased corn feeding and so far that isn't happening as ethanol is only one part of the equation, Maguire said.

Read the full story