Ethanol Rebounds From Four-Week Low as Corn Exports Increase
Ethanol rebounded from a four-week low as corn increased on signs of more export demand.
Futures rose 0.9 percent after the Agriculture Department reported that exporters sold a combined 264,700 metric tons of corn, the primary ingredient in U.S. production of the biofuel, to Mexico and South Korea.
“Corn finally had a little reversal here and the people that were sitting on the sidelines decided to buy some ethanol, too,” said Will Babler, a broker at First Capitol Risk Management in Galena, Illinois.
Denatured ethanol for February delivery advanced 1.9 cents to $2.131 a gallon on the Chicago Board of Trade. Prices yesterday settled at $2.112, the lowest level since Dec. 19. Futures have slipped 7.9 percent in the past year.
In cash market trading, ethanol in the U.S. Gulf slid 1.5 cents, or 0.7 percent, to $2.205 a gallon and in New York the additive increased 0.5 cent to $2.215, according to data compiled by Bloomberg.
Ethanol in Chicago climbed 0.5 cent to $2.105 a gallon and on the West Coast the biofuel rose 0.5 cent to $2.22.
Corn for March delivery increased 12.5 cents, or 2.1 percent, to $6.06 a bushel in Chicago. One such unit makes at least 2.75 gallons of ethanol.
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