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Old 02-21-2008, 08:56 PM   #1 (permalink)
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Ethanol kills grain food market


According to a Scientific American research article, The United States would
have to convert 100% of it's land to farming Wheat and grain (not just farm
land, but all land) to meet 80% of the county's demand for ethanol if 100% of
USAmerica switched to the E85 standard.

Well, the US is not doing that and some other countries simply can't do that,
even though E85 and Ethanol are in more of a demand now than ever.

This article is an example of the consequence we are seeing for increased
Ethanol and E85 use as less wheat is being farmed to meet the corn's Ethanol
demand. You have already seen the prices of milk and eggs rise as corn
(used as feed to these animals) has become more expensive due to this
alt-fuel demand. But, as it turns out, the pocket pain does not end there.
(end my commentary)
__________________________________________________ ________

Why You Will Pay More for Bread, Pasta
Rising Demand for Wheat Worldwide Means Skyrocketing Bread and Pasta
Prices for U.S.

Bakery owner Pam Weeks counts every pinch of flour and watches every

"It's just unbelievable how much the price of flour went up overnight —
literally," said Weeks, who runs Levain Bakery in New York City.

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Just a few weeks ago, 50-pound bags of flour cost about $15. Today, they're
"You try to figure out ways to cope, but it's to the point now where we are
going to have no choice. We're going to have to raise prices," she said.
Blame it on the price of wheat. Demand for alternative energy has farmers
planting less wheat and more corn, the key ingredient of ethanol. According
to the USDA, since 1997, the amount of farmland dedicated to planting wheat
has dropped from 70.4 million acres to 60.4 million, while corn acreage has
risen from 79.5 million to 99.6 million.

Add to that the growing appetite for wheat from developing countries, and
the supply is strained. U.S. wheat stockpiles have hit a 60-year low, and
wheat prices have never been higher, which means pasta prices have
doubled. And that loaf of bread will cost you an extra 20 cents. Economists
say food inflation is as high as it has been in nearly 15 years.

The price spike is being felt across the globe. In Italy, the cost of pasta is
spiraling — up 20 percent since September. Malaysia no longer allows anyone
to take flour out of the country. And in Pakistan, they now stockpile wheat
and use their military to guard flour mills.

"As long as this strong foreign demand continues — as long as the demand
for ethanol continues very rapidly ... there just doesn't seem to be any end
in sight," said Vic Lespinasse, a grain analyst with Illinois Grain.

This puts wheat farmers, like Joe Kejr of Kansas, in the unusual position of
being in the driver's seat.

"It's real exciting to see where prices are. Prices I haven't seen in my
lifetime," Kejr said.

With the world's hunger for ethanol changing the landscape of America,
Weeks said she wonders at what price it will curb our appetite for wheat.

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