Dec. 20 (Bloomberg) -- Ethanol futures extended the longest winning streak since Nov. 16 after a report that U.S. builders started on the most houses in 19 months.
Futures rose 1.3 percent as the Commerce Department said housing starts increased 9.3 percent last month to a 685,000 annual rate, exceeding the highest estimate of economists surveyed by Bloomberg.
“It’s holiday exuberance,” said Peyton Feltus, president of Randolph Risk Management Inc. in Dallas. “The housing starts number was nice, I reckon. Everyone’s in a positive mood.”
Denatured ethanol for January delivery advanced 2.8 cents to $2.14 a gallon on the Chicago Board of Trade, the third consecutive gain in the longest such streak since Nov. 16. Prices are down 10 percent in 2011, heading for the first yearly decline since 2008.
In cash market trading, ethanol in Chicago added 5 cents, or 2.3 percent, to $2.205 a gallon and in New York the additive increased 4.5 cents, or 2 percent, to $2.30, according to data compiled by Bloomberg.
Ethanol on the West Coast jumped 4 cents, or 1.8 percent, to $2.315 a gallon and in the U.S. Gulf the biofuel advanced 3 cents, or 1.3 percent, to $2.325.
Crude oil for January delivery gained $3.34, or 3.6 percent, to settle at $97.22 a barrel on the New York Mercantile Exchange. The January contract expires today.
--Editors: Charlotte Porter, David Marino
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