Ethanol Futures Gain as Corn Advances on Export Sales Increase
Ethanol futures gained in Chicago, paring a third monthly decline, as corn rose on signs of increased export demand.
Futures advanced after the Agriculture Department reported that export sales of corn jumped 26 percent last week from the previous week. Ethanol in the U.S. is made mostly from the grain.
“Ethanol and corn always have a big link but we just don’t have a compelling story right now,” said Jerrod Kitt, an analyst at Linn Group in Chicago.
Denatured ethanol for February delivery increased 0.1 cent to $2.167 a gallon on the Chicago Board of Trade. Prices fell 1.6 percent this month.
In cash market trading, ethanol in Chicago advanced 3.5 cents, or 1.7 percent, to $2.155 a gallon and on the West Coast the additive jumped 3 cents, or 1.3 percent, to $2.275, according to data compiled by Bloomberg.
Ethanol in the U.S. Gulf climbed 2.5 cents, or 1.1 percent, to $2.245 a gallon and in New York, the fuel added 2.5 cents, or 1.1 percent, to $2.27.
Corn futures for March delivery rose 7.25 cents, or 1.1 percent, to $6.39 a bushel in Chicago. One bushel makes at least 2.75 gallons of ethanol.
To contact the reporter on this story: Mario Parker in Chicago at firstname.lastname@example.org
To contact the editor responsible for this story: Dan Stets at email@example.com