Ethanol futures climbed to a one- month high in Chicago on concern that the corn harvest may be more damaged than previously estimated.
Futures followed corn higher after findings from the annual Pro Farmer Midwest Crop Tour showed average yields in the western two-thirds of Ohio, the eighth-biggest state producer of the grain, were down 29 percent to 110.5 bushels per acre. The Agriculture Department estimated Aug. 10 that the yield would fall 20 percent to an average 126 bushels from 158 last year.
“The reports out of this Pro Farmer crop tour are that things may be worse than we thought,” said Ian Jackson, a trader at SCB & Associates LLC in Chicago. “It’s just a flat price move with corn.”
Denatured ethanol for September delivery rose 4.1 cents, or 1.6 percent, to settle at $2.667 a gallon on the Chicago Board of Trade, the highest price since July 20. The futures have gained 21 percent this year.
In cash market trading, ethanol in Chicago jumped 7.5 cents to $2.65 a gallon, data compiled by Bloomberg show. On the U.S. Gulf Coast, the additive increased 6 cents to $2.71.
Ethanol in New York added 5 cents to $2.71 a gallon. On the West Coast, the biofuel jumped 1 cent to $2.785.
Corn for December delivery rose 15 cents, or 1.8 percent, to $8.3875 a bushel in Chicago.
To contact the reporter on this story: Mario Parker in Chicago at firstname.lastname@example.org
To contact the editor responsible for this story: Dan Stets at email@example.com