Jan. 23 (Bloomberg) -- Ethanol futures rose to the highest price in more than a week in Chicago as corn and crude oil each gained on supply concerns.
Futures increased a third day as corn, the primary ingredient used to make the biofuel in the U.S., climbed on speculation that inclement weather damaged crops in South America and as oil jumped after the European Union agreed to ban imports from Iran.
“Corn and crude were both up,” said Matt Janney, a trader at Citigroup Global Markets Inc. in Chicago. “Everyone’s watching the weather in South America right now.”
Denatured ethanol for February delivery advanced 2.1 cents, or 1 percent, to $2.153 a gallon on the Chicago Board of Trade. Prices have fallen 7.7 percent in the past year.
In cash market trading, ethanol in New York gained 3 cents, or 1.4 percent, to $2.24 a gallon and in the U.S. Gulf the additive climbed 1.5 cents, or 0.7 percent, to $2.21, according to data compiled by Bloomberg.
Ethanol on the West Coast added 1.5 cents, or 0.7 percent, to $2.23 a gallon and in Chicago the biofuel rose 1 cent, or 0.5 percent, to $2.11.
Corn for March delivery increased 8.5 cents, or 1.4 percent, to $6.20 a bushel in Chicago. One bushel makes at least 2.75 gallons of ethanol.
Oil for March delivery climbed $1.25, or 1.3 percent, to settle at $99.58 a barrel on the New York Mercantile Exchange. Prices have increased 12 percent in the past year.
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