RICHMOND, Va.—A recent analysis from BB&T Capital Markets predicts increased demand for ethanol in 2010, as the Environmental Protection Agency (EPA) is expected to raise the blend limit for ethanol to 12 percent from the current 10 percent by summer 2010.
As reported by the Wall Street Transcript, ethanol drove higher corn demand, which resulted in more acreage being planted in corn this year and one of the largest harvests of U.S. corn crops in its history. Those acres were taken from primarily soybeans, but also cotton, peanuts, etc., resulting in higher prices for those commodities.