According to The Times, the price of a bushel of corn increased to over $6 on the Chicago Mercantile Exchange in early April 2008, partly due to speculation that American farmers are planting less corn.
The US Department of Agriculture has forecast that corn acreage in 2008 will be significantly lower compared to 2007, as farmers are switching to higher-profit generating crops, according to the news source.
Additionally, the ethanol industry is being perceived as contributing to the elevated price of corn, as it increases its usage of the US corn harvest to manufacture biofuels, reported The Times.
