Ethanol Rises to Four-Week High on More Expensive Output Costs

Ethanol rose to a four-week high in Chicago after the government forecast smaller-than-expected corn stockpiles and on tighter supply of the biofuel.

The grain-based gasoline additive gained after the Agriculture Department estimated corn inventories before next year’s harvest may total 870 million bushels, the lowest since 1996, raising ethanol production costs. Supply of ethanol is the lowest since January, according to the Energy Department.