Ethanol Futures Extend Longest Streak of Gains in Seven Weeks
By Mario Parker - Dec 22, 2011 9:22 PM GMT .
Ethanol extended its longest streak of gains in seven weeks on speculation that production costs will increase.
Futures rose as corn advanced on concern that hot, dry weather blanketing South America is damaging crops and will lead to increased U.S. exports. Ethanol in the U.S. is made mostly from the grain. The profit from turning a bushel of corn into the biofuel is referred to as the crush margin.
“Ethanol trade continues to track corn more or less, although today saw a small gain in the crush,” SCB & Associates in Chicago wrote in a note to clients.
Denatured ethanol for January delivery added 1.6 cents, or 0.7 percent, to settle at $2.173 a gallon on the Chicago Board of Trade. Futures have fallen 8.6 percent this year and are headed for the first yearly decline since 2008.
In cash market trading, ethanol was unchanged in the U.S. Gulf at $2.325 a gallon and in New York the additive climbed 1 cent, or 0.4 percent, to $2.285 a gallon, according to data compiled by Bloomberg.
Ethanol in Chicago added 0.5 cent to $2.205 a gallon and in New York the biofuel increased 1 cent, or 0.4 percent, to $2.285.
Corn futures for March delivery climbed 1 cent to $6.175 a bushel on the CBOT, capping the first five-session gain since mid-May.
http://www.bloomberg.com/news/2011-12-2 ... weeks.html