Rising corn prices mean higher costs for ethanol, livestock
DES MOINES, Iowa -- Rising corn prices have increased the value of Iowa's crop by billions of dollars, but financial experts say the spike in corn cost could harm production of ethanol.
Corn prices have risen to $5.55 a bushel after reports from farmers of decreased yields due to moisture damage to corn plants. Corn traded at around $3.60 in mid-June.
The Des Moines Register reports the rise means Iowa's corn crop's worth has gone from $13 billion in mid-June to more than $18 billion this month.
Des Moines commodity trader Tomm Pfitzenmaier of Summit Commodities says if the price of corn continues to go up, "ethanol production could come to a screeching halt."
The high prices also affect hog and cattle producers, who will see higher feed costs.