Ethanol rose for the first time in three days as gasoline gained and rains across the Midwest are expected to bring only scattered relief to the corn crop.
Prices rose as gasoline settled above $3 a gallon for the third time in four days. Much of the corn-growing region remains parched and will get little help from forecast rain, according to Joel Widenor, co-founder of Commodity Weather Group LLC in Bethesda, Maryland. The drought has left crops across the region in the worst shape since 1988.
Denatured ethanol for September delivery rose 1.1 cents, or 0.4 percent, to settle at $2.576 a gallon on the Chicago Board of Trade. It was the first increase since Aug. 9.
Corn for December delivery slid 3.25 cents, or 0.4 percent, to $7.89 a bushel in Chicago. One bushel makes at least 2.75 gallons of ethanol.
September-delivery gasoline rose 1.07 cents, or 0.4 percent, to $3.0014 a gallon on the exchange.
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