Ethanol producers face price risk from the inputs they must purchase and also from the finished fuel ethanol they offer for sale.  Domestically, corn is the predominant feedstock used in ethanol product.  However, corn prices do not necessarily correlate well with the price of ethanol since each market is affected by unique supply and demand conditions.  Factors affecting the grain markets, such as weather, crop conditions, and international trade, are distinct from those that affect ethanol, such as crude oil and gasoline supply and demand factors, the regulatory climate and the availability of other fuel oxygenates.

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 - Corn Crush Reference Guide - 08.06.2007