RFA releases report on plunging corn, wheat prices; no relief at grocery proves no link between ethanol and food prices, says NGCA

The Renewable Fuels Association released a report, “Will the Plunge in Grain Prices Mean Lower Food Prices at the Supermarket?” documenting the sharp declines in farm commodity prices in 2008. “The fact that ethanol production is expanding and food prices are also on the increase while we have seen a continual decrease in corn prices since July means only one thing,” said Bob Dickey, NCGA president. “And that is that those who have accused corn growers and ethanol producers of taking food from the hungry were completely wrong.” Corn futures have fallen more 50 percent from their March 2008 high of $7.85, closing at $3.72 for the December contract last Friday at the Chicago Board of Trade.

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