Ethanol Advances Versus Gasoline as Heat Wave May Slow Output
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Ethanol futures jumped to the highest price in more than five weeks, slashing their discount to gasoline, on concern a heat wave in the U.S. Midwest will force plants to reduce operations and threaten corn crops.
The spread, or price difference, shrank by 12.75 cents to 44.37 cents amid forecasts that temperatures in southern Minnesota and northern Iowa may be as much as 15 degrees above normal through the rest of this week. Most ethanol plants in the U.S. are in the corn-rich Midwest.