For a number of recent years, a close relationship has existed between corn, ethanol, and gasoline prices. The relationship was driven by government mandates requiring increased use of ethanol in gasoline as well as the time required for the ethanol industry to increase capacity to meet the mandated volumes. What does the future hold?
Over the last several years the rapidly expanding market for ethanol has increased the demand for corn resulting in an increase in corn price. During this same time period the cost of producing corn has risen substantially. What does the future hold?
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