Oil companies buying surplus corn ???

Ok here is how I heard it, a truck driver told a friend of hubby's that he had just found out from someone at a farm co-ops that the oil companies are buying up all the corn from the co-ops. Sorry at this point I can't confirm this, I was wondering if anyone here might knows more about it.

I'm not sure what they are up to but it does not sound good. Are they trying to corner the market to keep others from making fuel from oil, or are they going to make their own product from it? The article below seems more worried about the competition for the corn for beef and the need to make ethanol. Either way it would seem we the consumer are going to be paying higher prices for both if the oil companies get their hands in it.

www.aaalivestock.com...

There's no denying the fact that suddenly there is surging demand for ethanol as a gasoline additive. Struggling to meet the demand are 101 refineries in this country with a capacity of 4.8 billion gallons per year. Another 38 refineries are under construction and who knows how many are on drawing boards? This year, after a late start, the U.S. will pass Brazil as the world's largest ethanol producer.

More and more areas are requiring the addition of ethanol into the gas mixture to replace some of the additives that have to be taken out. I don't remember what they are right now. Also some areas that have smog problems require ethanol to be added. I think that some states are requiring that gas contain a certian amout of ethanol too so there may very well be a shortage of ethanol.

I don't see a problem with a shortage of corn for cow feed. The left over portion called distillers grain can still be used to feed cows.