You have to look at the market numbers to see where it;s going and it isn't all Ethanol. There are only 900 E-85 gas stations in the U.S. That's really a drop in the bucket.

“The conditions ratings report for corn[/b] shows a bearish supply argument, but the futures market has been more driven by demand lately,” said Kub.
Ethanol fuel is consuming 20% of last year's corn[/b] crop[/b] and is expected to gobble up more than 25% of this year's crop[/b]. This is up drastically from 5% in 2004 and 6% in 2005. U.S.[/b] ending stocks to usage ratio for the 2006/2007[/b] crop[/b] year is pegged at 10.2%, the 4th lowest on record.
U.S.[/b] ethanol production is up almost 30% over last ye...

You have to look at the market numbers to see where it;s going and it isn't all Ethanol. There are only 900 E-85 gas stations in the U.S. That's really a drop in the bucket.

“The conditions ratings report for corn[/b] shows a bearish supply argument, but the futures market has been more driven by demand lately,” said Kub.
Ethanol fuel is consuming 20% of last year's corn[/b] crop[/b] and is expected to gobble up more than 25% of this year's crop[/b]. This is up drastically from 5% in 2004 and 6% in 2005. U.S.[/b] ending stocks to usage ratio for the 2006/2007[/b] crop[/b] year is pegged at 10.2%, the 4th lowest on record.
U.S.[/b] ethanol production is up almost 30% over last year with new production facilities coming online regularly. There are over 100 ethanol plants in operation at present in the U.S.[/b], but 40 more are in the making. Right now, there are 900 gas stations selling 85% ethanol (E85).
According to Collins, corn[/b] ethanol use will reach 2.15 billion bushels and increase 50% to 3.2 billion bushels in 2007[/b]-08.
In a research note, Allendale Inc. said the perception of an extended dry outlook for the southeast Midwest corn[/b] region and too much rain for the northwest Midwest is immediately bullish to corn[/b].
Yesterday, corn[/b] futures hit 2 week highs, as traders showed concerned about import/export news out of China and weather forecasts that called for the eastern corn[/b] belt to remain mostly dry in the near-term.
According to industry sources, China may become a net corn[/b] importer of 9.3 million tonnes this year amid growing domestic demand. China's demand for corn[/b] might hit 155.3 million metric tonnes in 2007[/b], while output is estimated[/b] to reach 146 million metric tonnes.