February 9, 2007

US corn prices to drive up poultry, pork and beef prices, in that order
 

As corn prices rise due to greater demand from the ethanol industry, meat prices are following suit- starting with poultry, pork and then beef, analysts said. 

Already, broiler prices are up 10 percent compared to two months ago.

The price of corn has surged to US$4 a bushel nearly twice of that a year ago. About one-fifth of the corn crop is now being used to produce ethanol.

Ethanol would also affect prices of wheat and soy, too as farmers devote land used for growing such crops to grow the more profitable corn.

However, experts say corn prices can only go so far before levelling out as higher corn prices would cut into profits of ethanol producers too and already ethanol producers are reporting slim margins.