Ethanol Climbs to Two-Week High as U.S. Corn Sales Gain
Ethanol climbed to a two-week high in Chicago on concern that global demand for U.S. corn will eat into reserves.
Futures gained for a third day, the longest streak since March 13, after the Agriculture Department said exporters sold 1.44 million metric tons of corn for delivery in the 2012-2013 marketing year that starts Sept. 1, the biggest sale in 18 years. One bushel of the grain makes at least 2.75 gallons of ethanol in the U.S.
“It’s all linked to the corn,” said Jim Damask, a manager at Biofuelsconnect, a Jupiter, Florida-based energy broker.
Denatured ethanol for May delivery rose 3.1 cents, or 1.4 percent, to settle at $2.228 a gallon on the Chicago Board of Trade, the highest price since April 12. Prices dropped 1.6 percent this month and are up 1.1 percent this year.
In cash market trading, ethanol in New York was unchanged at $2.27 a gallon and in Chicago the additive increased 3 cents to $2.20, according to data compiled by Bloomberg.
Ethanol in the U.S. Gulf jumped 3 cents to $2.26 a gallon and on the West Coast the biofuel gained 2 cents to $2.335.
Corn futures for July delivery rose 8.75 cents, or 1.4 percent, to $6.3425 a bushel in Chicago.
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