USDA’s chief economist blasts linkage of wheat prices, ethanol demand

The USDA’s chief economist blasted the Washington Post at the National Farmers Union meeting over an article connecting high wheat prices to ethanol demand. He said the spike in wheat prices had nothing to do with ethanol; that the 2007 wheat crop was planted before corn prices spiked, and that the price increases is the low wheat harvest yields in Canada, the Ukraine, Australia and the European Union.

Numerous outlets including the Post republished a story originating from Reuters last week misidentifying a anti-biofuels study as an OECD report. Meanwhile, wheat harvest figures from Australia do not look to be able to make up for shortfalls from the European drought.

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