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ITRO News AXcess News: Record Corn Prices Blamed on Ethanol Demand

HOUSTON--(BUSINESS WIRE)--Corn prices hit a ten-year high after the USDA announced that crop yields for 2006 were at a three-year low while average bushels per acre between November and January were at the second lowest level in 32 years. Record prices were attributed to short supply and the growing demand for ethanol fuel.

Corn for March delivery traded up 4.25 cents Thursday to close at $4.12 per bushel after having risen 20 cents per bushel since January 1, 2007.

In the third quarter of 2006, ethanol production levels were estimated to be 3 billion gallons in the Corn Belt states of Iowa, Minnesota, Illinois, Nebraska and South Dakota alone. In 2006, the USDA reports that over 15% of the U.S. corn crop was used to generate ethanol. Now, farmers are said to be eyeing larger corn crops, which will take away from soybeans and wheat acreage. The USDA forecasts a 4.5% increase in total U.S. corn acreage this year.

But with an increase in corn acreage comes higher levels of fertilizer use, which according to USDA data rose over 100% in price since 2000. In fact, nitrogen fertilizer rates have gone up on average 10% per year in the last decade and the USDA forecasts those costs to climb 11% this year.

Farmers have been racing to find alternative fertilizer sources and in Reno, Nevada, one company may have an answer.

Itronics, Inc. (OTCBB: ITRO) reported that it has begun university testing of its GOLD’n GRO liquid fertilizer on corn applications. The company, which operates the only EPA-approved plant in the United States, manufactures liquid fertilizer from recycled photochemicals which are sold in bulk in California, Oregon, Washington and other states.

The company reported earlier this week that its fourth quarter fertilizer sales grew 47% over the same period last year and if you’re wondering what that has to do with corn – plenty.

Itronics’ GOLD’n GRO fertilizer is used on citrus, cotton and specialty crops in California and several other states. The company’s growth in fertilizer sales is attributed to lower costs (as much as 15% less) as well as its environmentally friendly makeup, and now the company is setting its eyes on one of the largest commodity crops in the U.S. – corn.

Itronics President, Dr. John Whitney, told AXcess News that, “Itronics' subsidiary, Itronics Metallurgical, Inc., has initiated university studies to measure the effectiveness of its liquid fertilizer when compared to other similar products.”

Dr. Whitney explained that, “In large-scale field use in California, GOLD’n GRO is proving to be 2 to 3 times more effective than products it is replacing, meaning that only one third to one half as much fertilizer is needed to satisfy the crop's nutritional requirement.”

Whitney went on to say, “Due to increasing interest in growing corn in California and Midwestern states, the university research work is being conducted with corn plants under carefully controlled greenhouse growing conditions. The initial research program is expected to take about a year.”

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