Ethanol Strengthens Against Gasoline as Corn Prices Increase

Higher corn prices increase production costs for ethanol distillers * Ethanol’s discount to gasoline, based on March contracts, narrowed 4.18c to 76.94c/gal at 1203 p.m. New York time * Corn, primary ingredient for U.S.-made ethanol, rose as much as 1.1% to $4.3875/bu on CBOT, highest since Oct. 28 * “That’s spilling over to ethanol,” said Mike Blackford, consultant at Intl FCStone in Des Moines, Iowa * Denatured ethanol for March delivery climbed 2c, or 1.1% to $1.836/gal on CBOT * Gasoline for March delivery fell 2.6c, or 1% to $2.6054/gal on Nymex * Corn crush spread, or difference between bushel of corn and gallon of ethanol, was 25c, up from 24c Jan. 31

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