Oct. 11 (Bloomberg) -- Ethanol gained the most in three months as corn prices surged the most in more than a year.
The biofuel gained 4.4 percent in Chicago after the Department of Agriculture reported U.S. exporters sold 261,200 metric tons of corn to Mexico, the world’s second-biggest buyer after Japan. Corn is the largest U.S. crop, valued at $66.7 billion last year, USDA data show.
“With corn being limit-up today, that had the biggest correlation to ethanol,” Chris Wilson, an economic analyst at First Capitol Risk Management in Galena, Illinois, said in a telephone interview.
Denatured ethanol for November delivery rose 11 cents to settle at $2.63 a gallon on the Chicago Board of Trade. It was the largest gain since July 5.
Corn futures for December delivery climbed the exchange limit of 40 cents, or 6.6 percent, to $6.45 a bushel on the Chicago Board of Trade, the biggest advance since June 2010.
In cash market trading, ethanol in New York gained 4.5 cents, or 1.6 percent, to $2.835 a gallon, and on the West Coast the biofuel added 4 cents, or 1.4 percent, to $2.845, according to data compiled by Bloomberg.
Ethanol in the U.S. Gulf jumped 3.5 cents, or 1.3 percent, to $2.775 a gallon, and in Chicago the additive climbed 5 cents, or 1.9 percent, to $2.69, Bloomberg data show.
Gasoline for November delivery gained 5.23 cents, or 1.9 percent, to settle at $2.7476 a gallon in New York. The contract covers reformulated gasoline, which is made to be blended with ethanol before delivery to filling stations.
--With assistance from Jeff Wilson in Chicago. Editors: Charlotte Porter, Richard Stubbe
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