Jan. 26 (Bloomberg) -- Ethanol futures rose for a sixth day to a two-week high as gasoline and crude oil gained after the Federal Reserve said it will maintain low interest rates.
Futures followed gasoline and oil higher a day after Fed officials said the benchmark interest rate will stay near-zero until at least late 2014. Ethanol is blended with gasoline to stretch supply as part of U.S. plans to reduce dependence on foreign sources of oil.
“The energy markets were higher,” said Matt Janney, a trader at Citigroup Global Markets Inc. “Just a little bit of follow-through from yesterday, and the dollar’s a little weaker.”
Denatured ethanol for February delivery climbed 0.4 cent to $2.187 a gallon on the Chicago Board of Trade, the highest level since Jan. 11. Prices have gained 3.6 percent since Jan. 18 and fallen 6.1 percent in the past year.
In cash market trading, ethanol in the U.S. Gulf increased 1.5 cents, or 0.7 percent, to $2.245 a gallon and in New York the biofuel advanced 1.5 cents, or 0.7 percent, to $2.265, according to data compiled by Bloomberg.
Ethanol in Chicago rose 1 cent, or 0.5 percent, to $2.155 a gallon and on the West Coast the additive climbed 1 cent, or 0.4 percent, to $2.26.
Crude oil for March delivery increased 30 cents to $99.70 a barrel on the New York Mercantile Exchange, the highest settlement price since Jan. 19. Prices are up 14 percent in the past year.
Gasoline for February delivery rose 1.28 cents, or 0.5 percent, to $2.8466 a gallon in New York.
--With assistance from Jeff Wilson in Chicago. Editors: Charlotte Porter, Richard Stubbe
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