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 to Seven-Month High on Lower Output and Corn Costs

July 5 (Bloomberg) -- Ethanol futures rose to the highest price in seven months as producers tempered output in the face of more expensive corn.

Prices increased as corn, the primary ingredient used to make the fuel, jumped to a nine-month high as the corn-rich Midwest bakes under a heat wave. An Energy Department report today showed ethanol production last week sank to the lowest level since Sept. 23.

“It’s up pretty good,” said Jim Damask, a manager at Biofuelsconnect, a Jupiter, Florida-based alternative energy broker. “You’ve got bad weather for corn, so ethanol’s up on that. We’ve seen producers trimming production because of margins.”

Denatured ethanol for July delivery advanced 4.4 cents, or 1.9 percent, to $2.398 a gallon on the Chicago Board of Trade, the highest price since Dec. 5. Futures have gained 8.9 percent this year.

In cash market trading, ethanol was unchanged in the U.S. Gulf at $2.38 a gallon and in Chicago the additive soared 7.5 cents, or 3.2 percent, to $2.39, according to data compiled by Bloomberg.

Ethanol on the West Coast added 6 cents, or 2.5 percent, to $2.50 a gallon and in New York the biofuel surged 5.5 cents, or 2.3 percent, to $2.46.

Corn for December delivery surged 36.75 cents, or 5.5 percent, to $7.1125 a bushel in Chicago. One bushel makes at least 2.75 gallons of ethanol.

Production of ethanol slipped 2.9 percent to 857,000 barrels a day last week. That’s both the biggest drop and lowest amount since Sept. 23.

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.