Ethanol futures rose to the highest level in more than a week in Chicago as corn gained after a report showed higher export demand.
The biofuel surged 2 percent after the Agriculture Department said U.S. exporters sold 1.44 million metric tons to unknown destinations for delivery in the marketing year that starts Sept. 1, signaling higher costs for ethanol production.
“Volumes for ethanol were higher today, as bullish news drove the product out of its monthlong slumber,” SCB & Associates LLC in Chicago said in a note today.
Denatured ethanol for May delivery rose 4.3 cents to settle at $2.197 a gallon on the Chicago Board of Trade, the highest price since April 16. Prices have dropped 0.3 percent this year.
In cash market trading, ethanol in New York climbed 3.5 cents, or 1.6 percent, to $2.27 a gallon and in Chicago the additive gained 3 cents, or 1.4 percent, to $2.17, according to data compiled by Bloomberg.
Ethanol in the U.S. Gulf jumped 3 cents, or 1.4 percent, to $2.23 a gallon and on the West Coast the biofuel increased 2.5 cents, or 1.1 percent, to $2.315.
Corn futures for July delivery rose 18 cents, or 3 percent, to $6.255 a bushel in Chicago.
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