China: Ethanol output has corn prices popping

For the first time in China’s history, grain prices are rising not due to a poor harvest or increasing demand but because of soaring international oil prices.

To feed the nation’s increasing appetite for energy, a huge amount of capital including from overseas is chasing corn, soy and wheat for biofuel production; and pushing up prices to record highs.

Analysts say that while industrial use only accounts for about a sixth of overall corn consumption, it is expanding at up to 15 per cent a year, fuelled by high crude oil prices.
China Daily