Ms. Aslam: The key development over the last few years has been the rise of biofuels and renewable fuels. This has driven the price of grain up as ethanol has increased the demand for grain. The entire food complex has had to adjust to higher costs. Given the continuing growth in ethanol capacity, we anticipate that the grain prices will remain at above average levels for the next few years.
TWST: From an agri-business point of view, what's going on - more plantings?
Ms. Aslam: The total number of acres planted in the US is up. In particular,
farmers planted more corn in 2007 than they have since 1944. The USDA's latest
estimate for 2007 production is 13.3 billion bushels and total supply is
projected at 14.5 billion bushels. Fortunately mother nature has co-operated
with us with some great weather, helped along with some terrific gene technology
and good seeds that combined to produce record yields. The USDA expects 2007
yields to be 155.8 bushels per acre, the second highest ever behind 2004.
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