Ethanol Gains as Corn Advances on Increased Export Demand
Ethanol futures gained in Chicago as corn advanced on speculation that export demand is increasing for the feed and biofuel component.
The gasoline additive shadowed corn higher a day after the Agriculture Department said corn inspected for export climbed 31 percent from a week earlier. The grain is used to make ethanol in the U.S.
Denatured ethanol for April delivery rose 0.7 cents, or 0.3 percent, to $2.492 a gallon on the Chicago Board of Trade. Prices have gained 59 percent in the past year.
In cash market trading, ethanol in New York was unchanged at $2.61 a gallon and in Chicago the additive lost 0.5 cents to $2.51, according to data compiled by Bloomberg.
Ethanol in the U.S. Gulf slipped 0.5 cent to $2.64 a gallon and the fuel on the West Coast the fuel was unchanged at $2.71.
Corn for May delivery added 0.75 cent to $6.7175 a bushel in Chicago, up 9 percent from $6.165 on March 16. One bushel makes about 2.75 gallons of ethanol.
To contact the reporter on this story: Mario Parker in Chicago at mparker22@bloomberg.net.
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net.
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