Price Surge in Grains

Excessive demand for corn to produce ethanol is fueling its price. Farmers are devoting more land to produce extra corn creating pressure in the soyabeans and wheat market also. Soyabeans are in demand to produce biodiesel. China is expected to become a net importer of corn. It is devoting substantial resources to produce more ethanol from it. It has recently signed a deal to invest $3.83bn in one million hectares of land in the Philippines for higher-yielding corn, rice and sorghum.

Source : FT.com : Grains fuelled by alternative uses