The grocers (GMA) and Big Oil have financed a lot of unfriendly ethanol news headlines this year, so their PR war rooms must be working overtime to try and beat back this fair and balanced Reuters story that broke recently.
Sam Nelson, a Reuters writer, indicates in his article that "Heavy demand for corn from ethanol makers was seen as a key driver of corn futures to record highs in June, but since then the sharp decline of corn shows that belief was mistaken."
"Corn is down 50 percent from its high in June, even as the amount of grain used to produce renewable fuel in the U.S. remained the same."
So why aren't food prices lower now that corn prices have fallen from nearly $8 per bushel to $3.50?
According to a recent Chicago Tribune article, "Packaged goods-makers will do all they can to keep consumer prices high, even though their costs for wheat, corn, and other raw materials is falling."
So corn prices are down but food prices will remain high because GMA wants to profit at the expense of U.S. working families.
Link to Reuters article: http://www.guardian.co.uk/business/feedarticle/7914436
Posted by BJ, 10/27/08