Ethanol futures climbed to a two-week high amid signals of buying from refiners and as drier weather later this week is expected to boost supplies of corn.
Denatured ethanol for November delivery rose 2.6 cents, or 1.5 percent, to $1.810 a gallon on the Chicago Board of Trade at 11:30 a.m. New York time, paring this year’s losses to 17 percent. It was the highest price since Oct. 3. The U.S. harvest is expected to pick up later this week as fields dry, MDA Weather Services said yesterday.
“It’s all about corn, cheap corn available,” Jim Damask, a manager at Starfuels Inc. in Jupiter, Florida, said in a telephone interview. “Also, there are signals of refiners buying ethanol amid low inventories.”
November-gasoline advanced 4.23 cents, or 1.6 percent, to $2.7021 a gallon on the New York Mercantile Exchange. The contract covers reformulated gasoline, made to be blended with ethanol before delivery to filling stations.
Corn for December settlement declined 2 cents, or 0.5 percent, to $4.415 a bushel in Chicago. Prices have slumped 37 percent this year, the worst performance amid 44 commodities tracked by Bloomberg, as the U.S. is harvesting a record crop estimated at 13.8 billion bushels. Corn is the primary component in U.S.-made ethanol.
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