Ethanol Fueling Corn Prices

June 24th, 2007 by admin

It appears with all the high cost of gas these days, that corn is needed to make an alternate fuel in ethanol. I have seen a lot of worries about the prices of corn going up, and I really don’t understand it. I’m sure the owner of your local Mexican restaurant has good reasons to be concerned, since corn cost can affect a Mexican eatery a lot. I understand businesses that buy huge tons of corn or corn products how a few cents could mean thousands or maybe even millions of dollars they have to spend extra for higher corn prices. I also understand they have to turn around and add to the price of their products. So the corn flour tortilla that is holding your burrito together isn’t 99 cents anymore, and you have to pay $1.29 for it instead. Is this really reason for concern? I just bought some ears of corn that hadn’t been shucked yet, and they were 39 cents each! I would have spent a full dollar on that ear of corn and wouldn’t have thought twice about it. Now that I hear that prices are going up, and I see an ear for less than 40 cents, what’s the big deal?

Now look at the gas prices and what they have done. I could spend less than 30 dollars filling up my car with a tank of gas (use to). Now I can put 40 dollars in it, and it’s still not full! If I have to fill up my tank once a week, then this is over $10 difference in what money I have to spend weekly. Get my gas cost down anyway you can, and I will pay the $1.29 for the burrito, I promise!

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