Because corn trading on the Chicago Board of Trade hit an exchange price change limit of 20 cents per day Friday, with per-bushel prices rising to $3.96. Per-day price changes are imposed by the CBOT to limit price volatility and allow time for the market to digest major news - like the Friday morning USDA report detailing strong domestic corn demand along with strong exports.
Friday's Chicago Tribune had two articles about this, primarily focusing on the root cause of the rise of corn prices: ethanol production. One article focused on the impacts in Mexico, where corn prices have driven a 14% increase in the price of tortillas, a dietary staple in the country. The other article focused on the basics of the commodity, and hinted at the possibility of further price increases as the number of operating ethanol plants in the US will increase by roughly 50% in 2007.
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