Bloomberg News

Ethanol Increases Second Day on Signs of Stronger U.S. Economy

November 29, 2011

Nov. 29 (Bloomberg) -- Ethanol futures increased a second day in Chicago after separate reports showed signs of a stronger U.S. economy that could stoke fuel demand.

Futures advanced consecutive sessions for the first time since Nov. 16 after the Conference Board’s index rose to 56 in November, the biggest monthly gain since April 2003 and after Johnson Redbook Research said U.S. sales at stores open at least a year climbed 5.4 percent last week from a year earlier.

“Everything was higher,” said Jim Damask, a manager at Biofuelsconnect, a Jupiter, Florida-based alternative energy broker. “The front-month stuff is still kind of tight. It was up, but not as much as everything else.”

Denatured ethanol for December delivery rose 0.7 cent, or 0.3 percent, to $2.485 a gallon on the Chicago Board of Trade. The futures have climbed 4.5 percent this year.

In cash market trading, ethanol in Chicago slumped 7.5 cents, or 2.6 percent, to $2.775 a gallon and in New York the additive sank 6 cents, or 2 percent, to $2.925, according to data compiled by Bloomberg.

Ethanol in the U.S. Gulf dropped 5 cents, or 1.7 percent, to $2.925 a gallon and on the West Coast the biofuel decreased 4 cents, or 1.3 percent, to $2.95.

Crude oil for January delivery rose $1.58 to $99.79 a barrel on the New York Mercantile Exchange, the highest settlement since Nov. 16. Prices are up 9.2 percent this year.

Gasoline for December delivery gained 2.1 cents, or 0.8 percent, to settle at $2.5391 a gallon on the exchange. The January contract advanced 2.21 cents, or 0.9 percent, to $2.5398.

--Editors: David Marino, Richard Stubbe

To contact the reporter on this story: Mario Parker in Chicago at mparker22@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net


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