Ethanol Rises to Eight-Week High as Corn Extends Rally
Ethanol futures rose for the 15th straight session to an eight-week high as corn extended its rally on growing demand from overseas buyers.
The biofuel followed corn higher as U.S. exporters sold 120,000 metric tons of corn to Mexico, the U.S. Department of Agriculture said. The corn is for delivery in the 2010-2011 marketing year, which began Sept. 1, the USDA said today in a statement.
Corn is the primary ingredient used to produce ethanol in the U.S. One bushel distills into about 2.75 gallons of the gasoline additive.
Denatured ethanol for January delivery rose 1.1 cents, or 0.5 percent, to settle at $2.36 a gallon on the Chicago Board of Trade, the highest price since Nov. 3. Futures have climbed 21 percent this year.
Corn futures for March delivery gained 0.75 cent, or 0.1 percent, to close at $6.24 a bushel, the ninth straight gain.
In cash market trading, ethanol in New York increased 3 cents to $2.415 a gallon, and in Chicago advanced 2 cents to $2.335. The fuel added 1 cent to $2.335 a gallon in the U.S. Gulf, and on the West Coast gained 1.5 cents to $2.47 a gallon, according to data compiled by Bloomberg.
To contact the reporter on this story: Samantha Zee in San Francisco at szee@bloomberg.net
To contact the editor responsible for this story: Bill Banker at bbanker@bloomberg.net.
Rate this Page