November 22, 2008 11:31:08 CST
(Newser) – Gas prices could be going up even more as Midwest floods put acres of corn underwater, causing its price—and that of ethanol—to spike, the Wall Street Journal reports. Relatively low ethanol prices have helped keep gasoline in check, but ethanol refiners paying more for corn could be forced to pass the added costs along to consumers.
"Refiners might have a very hard time sourcing the ethanol because ethanol suppliers might not be able to get the corn," said one analyst, with 10% of Iowa's corn crop estimated lost. But with Americans already tightening belts, the analyst added, "this is happening in a bear market for gasoline. That will mute to some extent the impact of the ethanol problems."
Source Wall Street Journal
Oct 22, 08 1:20 PM CDT Plunging crop prices and soaring costs are hitting US farmers with a one-two punch that’s knocked the fight out of what had been one of the stronger segments of the nation’s economy, reports the Wall Street Journal. Corn prices have dropped some 50% since July, and prices for fertilizer and seed are expected to jump 40% next year. More »
Aug 7, 08 8:14 PM CDT A small group of Mexican scientists is working to create a massive agave-to-ethanol project that one says could supply the entire US need of 36 billion gallons by 2022, Renewable Energy World reports. The agave, used to make tequila and mescal, is high in sugar, resilient, and needs little cultivation, making it a prime candidate for ethanol production. More »
Aug 7, 08 2:50 PM CDT The EPA refused to cut a minimum ethanol quota today, despite critics’ charges that the biofuel mandate is driving high food prices, the New York Times reports. The agency approved Congress’ quota that requires the US use 9 billion gallons of ethanol in gasoline blends this year, denying Texas Gov. Rick Perry’s request to shrink it. More »
Jul 26, 08 1:04 PM CDT Gas prices dipped below $4 today for the first time in almost 2 months, CNN reports. A survey by AAA showed that a gallon of regular cost an average of $3.983, 2 cents lower than yesterday. The move continues a trend over roughly the last week in which prices have dropped 10 cents, and they could fall an additional 25 cents by the end of summer, AAA says. The drop mirrors a similar fall in the cost of crude oil. More »
Jul 23, 08 2:32 CDT The EPA is considering a proposal from the governor of Texas to slash the amount of ethanol that oil companies are required to blend into gasoline to meet quotas, the New York Times reports. Gov. Rick Perry is calling for the EPA to cut the ethanol mandate in half, from 9 billion to 4.5 billion gallons, arguing that billions of bushels of corn should be used to feed livestock instead. More »
gas prices • Iowa • ethanol • corn • Midwest floods
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