Ethanol rose for the first time in more than a week as corn prices advanced with dry conditions expected in the Midwest.
Ethanol gained 1 percent. The Midwest will be dry today and tomorrow, with only a few sprinkles in the north of the region, forecaster Telvent DTN said today in a report. Hurricane Isaac will bring a chance for rain in parts of Oklahoma and Kansas by Friday as most of the western Midwest stays dry, according to the brief.
Denatured ethanol for September delivery rose 2.6 cents to settle at $2.606 a gallon on the Chicago Board of Trade. It was the first gain since Aug. 21. Prices have climbed 18 percent this year.
In cash market trading, ethanol sank 1 cent in New York to $2.64 a gallon, rose 1 cent in Chicago at $2.57, slipped 1 cent in the U.S. Gulf to $2.61 and lost 1 cent on the West Coast at $2.72, according to data compiled by Bloomberg at 11:04 a.m. New York time.
Corn for December delivery rose 18 cents to $8.135 a bushel in Chicago. One bushel of corn makes at least 2.75 gallons of ethanol.
Producers are losing 34 cents on each gallon of the renewable fuel they make, based on the September contracts for corn and the biofuel, Bloomberg data show.
Plants can ease those losses by selling dried distillers grains, a byproduct of ethanol production that can be fed to cattle and livestock.
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