Oct. 6 (Bloomberg) -- Ethanol futures gained in Chicago as gasoline prices jumped for the second straight day and supplies of the biofuel in New York Harbor were tight.
Futures have gained 1.4 percent since an Energy Department report yesterday showed production of conventional gasoline blended with ethanol rose 2 percent in the week ending Sept. 30, the most since June 10, to 5.16 million barrels a day, while gasoline stockpiles declined.
“It’s definitely a fundamental rally here,” Justin Dirico, senior ethanol trader at SCB & Associates LLC in Chicago, said by telephone. “We’re still a little short in New York Harbor area for material and product, which has caused the spread from New York to Chicago to widen and continue to be well-bid.”
Denatured ethanol for November delivery rose 0.22 cent, or 0.9 percent, to settle at $2.492 a gallon on the Chicago Board of Trade, the contract’s fourth straight gain.
In cash-market trading, ethanol in New York gained 1.5 cents, or 0.5 percent, to $2.775 a gallon, and on the West Coast the biofuel added 2.5 cents, or 0.9 percent, to $2.705, according to data compiled by Bloomberg.
Ethanol in the U.S. Gulf jumped 9.5 cents, or 3.7 percent, to $2.66 a gallon, and in Chicago the additive climbed 7.5 cents, or 3 percent, to $2.575, Bloomberg data show.
Gasoline for November delivery soared 11.68 cents, or 4.5 percent, to settle at $2.686 a gallon in New York. The contract covers reformulated gasoline, which is made to be blended with ethanol before delivery to filling stations.
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