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— Patrick Farrell Bloomberg Businessweek: Higher corn prices.
This creates a tighter supply of corn for food production, resulting in higher corn prices.
Operating profit at the company's corn-processing unit fell by more than half because of higher corn prices and energy costs.
The agricultural processor Archer Daniels Midland said its fiscal first-quarter profit rose 9percentt as improved results at its oilseed-processing business offset higher corn prices.
The Government Accountability Office, an investigative arm of Congress, said, "The increasing demand for corn for ethanol production has contributed to higher corn prices".
In a study completed in May, researchers at Iowa State University concluded that retail food prices had already increased by $47 per person in the previous year or so as a result of higher corn prices.
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A 10%% higher corn price, for instance, leads to an expansion of corn acreage by about 4%% in Argentina and by about 6%% of the second corn in Brazil.
In fact, high corn prices are making ethanol more expensive at the pump, so it is not selling as well.
High corn prices are driving next-generation biofuel startups out of the country, and that could be a good thing.
He is also pleased that Mitt Romney dislikes federal rules mandating that lots of corn be turned into ethanol: a rule that he blames for high corn prices.
U.S. farmers' plan to plant less corn this year means that record-high corn prices, which are already above $5 a bushel, will likely stay high.
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