Aug. 9 (Bloomberg) -- Ethanol futures rose to the highest level in more than a week as producers braced for more expensive manufacturing costs.
Prices gained as corn hit a record a day before a U.S. Department of Agriculture report that may show the government slashed the corn-crop forecast to 10.929 billion bushels, the smallest amount in six years, according to the average of 29 analyst estimates in a Bloomberg survey.
“We’ve got a huge report coming out tomorrow and corn’s at an all-time high,” said Dan Flynn, a trader at Price Futures Group in Chicago.
Denatured ethanol for September delivery advanced 4.8 cents, or 1.9 percent, to $2.626 a gallon on the Chicago Board of Trade, the highest level since July 31. Prices have gained 19 percent this year.
In cash market trading, ethanol was unchanged in Chicago at $2.59 a gallon and on the U.S. Gulf Coast at $2.64, according to data compiled by Bloomberg.
Ethanol in New York sank 2 cents to $2.65 a gallon. On the West Coast, the fuel jumped 9.5 cents to $2.785.
Corn for December delivery increased 7.25 cents, or 0.9 percent, to $8.2375 a bushel in Chicago. Prices touched a record $8.2975. Futures have reached all-time highs four times in three weeks. One bushel of corn makes at least 2.75 gallons of ethanol.
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