Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Ethanol Rises Third Day on More Expensive Manufacturing Costs

Don't Miss Out —
Follow us on:

Jan. 10 (Bloomberg) -- Ethanol futures gained for a third day in Chicago amid higher production costs.

Prices rose to a five-week high on concern that corn costs will be higher if dry, hot weather hurts crops in South America and boosts demand for U.S. supplies. Corn has climbed 7.4 percent from a year ago.

“It hung in there, relative to corn,” said Chris Wilson, an analyst at First Capitol Risk Management in Galena, Illinois. “The rain everyone expected over the weekend wasn’t there, but the market priced it in yesterday. Today it is taking a break.”

Denatured ethanol for February delivery rose 0.5 cent to settle at $2.263 a gallon on the Chicago Board of Trade, the highest price since Dec. 5. Futures have fallen 1 percent in the past year.

In cash market trading, ethanol in New York increased 3.5 cents, or 1.5 percent, to $2.35 a gallon and on the West Coast the additive climbed 2 cents, or 0.9 percent, to $2.35, according to data compiled by Bloomberg.

Ethanol in the U.S. Gulf advanced 1 cent, or 0.4 percent, to $2.305 a gallon and in Chicago, the fuel gained 1 cent, or 0.5 percent, to $2.215.

Corn futures for March delivery settled at $6.52 a bushel. One bushel makes at least 2.75 gallons of ethanol.

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

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.