Ethanol futures rose for a second day in Chicago as higher fuel prices in Europe signaled stronger demand for U.S. exports.
Futures gained 0.2 percent as prices for the biofuel at the Amsterdam, Rotterdam and Antwerp hub are fetching $3.21 a gallon, about 21 percent higher than the U.S. price, according to data compiled by Bloomberg.
“From my perspective we’re still going to be highly sought after in the ethanol market,” said Jason Ward, an analyst at Northstar Commodity Investments LLC in Minneapolis. “Ethanol has been resilient. It’s the exports.”
Denatured ethanol for December delivery rose 0.6 cent to $2.652 a gallon on the Chicago Board of Trade. The futures have increased 12 percent this year.
In cash market trading, the gasoline additive in Chicago climbed 5 cents, or 1.8 percent, to $2.81 a gallon and in the U.S. Gulf the additive increased 4 cents, or 1.4 percent, to $2.965, according to data compiled by Bloomberg.
Ethanol in New York advanced 4 cents, or 1.4 percent, to $2.96 a gallon and on the West Coast, the biofuel added 1 cent, or 0.3 percent, to $3.045.
Corn for December delivery dropped 5 cents, or 0.8 percent, to $6.335 a bushel in Chicago. The grain is the primary input used to make ethanol in the U.S.
Gasoline for December delivery declined 6.85 cents, or 2.6 percent, to $2.5353 a gallon on the New York Mercantile Exchange. The contract covers reformulated gasoline, which is made to be blended with ethanol before delivery to filling stations.
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