NEW YORK (Reuters) - Floods in the Midwest that have pushed corn prices to record levels have wiped out profits for making U.S. ethanol and threaten to sink production of the fuel below government mandates.

"If it's simply economically impossible to make ethanol. then (the government) may have to amend or suspend the Renewable Fuel Standard," analyst Pavel Molchanov at Raymond James and Associates in Houston said by telephone.

The floods ravaging the corn crop across at least eight states, including Iowa and Illinois, at a time of growing global demand have put another roadblock before the U.S. biofuels policy. ... Read full article