Dropping corn prices helping ethanol and cattle producers - kotanow.com- Scottsbluff Area News, Sports, and Weather

Dropping corn prices helping ethanol and cattle producers

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Corn prices have been dropping since spring and experts say that's creating a 'double-edged' sword in the ag industry.

Corn prices started at $7.00 in April and have dropped to nearly $4.10 this week.

Experts say drops in value stem from the U.S. producing a record number of corn since the 1930s. Because of the big production this year, it's hurting corn producers.

But corn ethanol facilities and cattle producers have been benefiting from the big productions.

Experts say this is the time of year when prices drop but will pick back up in January.

"If it's hurting one set of this section, it's going to support another sector," says Extension Educator Jessica Johnson. "So we have to look at the industry as a whole and know that some of us are going to win and some of us are going to lose and everybody has gone through survival mode and now it's just time for corn producers to look at their margins and see what they can actually afford to spend coming into 2014."

Despite the double-edged sword, producers say they remain optimistic that corn prices will pick up again next year.

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