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 Gains Second Day on Speculation Fed Will Boost Economy

June 14 (Bloomberg) -- Ethanol gained for a second day in Chicago on speculation that a sputtering U.S. economy will lead the Federal Reserve to loosen monetary policy.

Futures rose after the Labor Department said jobless benefit claims climbed by 6,000 to 386,000 in the week ended June 9 and consumer prices fell by the most in three years. Ethanol followed equities higher on predictions that the Fed will act to stimulate growth.

“That’s what we’ve been conditioned to think,” said Peyton Feltus, president of Randolph Risk Management Inc. in Dallas. “Not just the Fed, but central banks in general. That’s what everybody thinks will happen.”

Denatured ethanol for July delivery gained 1.5 cents, or 0.7 percent, to settle at $2.065 a gallon on the Chicago Board of Trade. Prices have fallen 6.3 percent this year.

In spot market trading, ethanol in New York soared 7 cents, or 3.4 percent, to $2.115 a gallon and in Chicago the additive rose 5.5 cents, or 2.8 percent, to $2.045, according to data compiled by Bloomberg.

Ethanol in the U.S. Gulf gained 4.5 cents, or 2.2 percent, to $2.105 a gallon and on the West Coast the biofuel increased 2 cents, or 0.9 percent, to $2.175.

The biofuel is made from corn in the U.S. and blended with gasoline to stretch supply and meet federal mandates to decrease consumption of fossil fuels.

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.