Ethanol Futures Advance as Discount to Gasoline Bolsters Demand

Denatured ethanol for July delivery climbs 0.3c to settle at $2.158/gal. on CBOT. * Ethanol’s discount to gasoline widens 4.28c to 82.68c/gal. * “It’s pretty cheap,” Jim Damask, manager at StarFuels Inc. in Jupiter, Fla., said today in telephone interview. “It’s a bargain.” * Gasoline for July delivery +4.58c, or 1.6%, to settle at $2.9848/gal. on Nymex * In cash market trading, ethanol in Gulf Coast +5.5c to $2.38/gal; Chicago +1c to $2.235; N.Y. -1c to $2.28; West Coast -1c to $2.625: data compiled by Bloomberg * Corn for July delivery -8c, or 1.7%, to $4.51/bu on CBOT * Corn crush spread at 52c

To contact the reporter on this story: Mario Parker in Chicago at mparker22@bloomberg.net

To contact the editors responsible for this story: David Marino at dmarino4@bloomberg.net Charlotte Porter, Bill Banker

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