Rains and flooding in US Midwest would likely lead to a lower corn production in US this year,further impacting biofuel production.US Department of Agriculture has lowered its predictions of estimated corn production from 12.1 billion bushels to 11.7 billion.Corn future prices have also risen to $7 a bushel from $4 a bushel in January.Experts, however predict that soaring oil prices would make it profitable to produce ethanol from corn even if the prices rise to $9.50 a bushel for corn.
Again such a scenario would lead to decrease in corn feedstock for agricultural and consumption purposes ,as corn producers would find it more profitable to sell corn to biofuel producers than to the livestock industry.
