February 12th, 2013

Brazilian ethanol prices trading above raw sugar futures for the first time in almost two years are spurring speculation that millers will favor making the biofuel over the sweetener in the season starting in April.

Hydrous ethanol, used in flex fuel cars in Latin America’s largest economy, is trading at about 19 cents a pound, according to Lausanne, Switzerland-based Kingsman SA, which has provided sugar and biofuels research for more than 20 years. The price is 4.7 percent higher than raw sugar futures trading at 18.14 cents a pound on ICE Futures U.S. in New York today. Ethanol surpassed sugar for the first time since April 2011 on Feb. 7, said Beatriz Pupo, a Kingsman analyst.

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December 14th, 2012

Ethanol Futures – Ethanol’s discount to gasoline expanded to the widest level in three weeks as the motor fuel advanced on renewed economic optimism.

The fuels gained as Federal Reserve data showed U.S. industrial production rose in November by the most in two years and after a preliminary purchasing managers’ index said China’s manufacturing is expanding at a faster pace this month. The Energy Department said Dec. 12 that ethanol stockpiles were at the highest level since June 29.

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November 7th, 2012

Ethanol Futures – U.S. ethanol production is headed for the first decline in 16 years, jeopardizing the nation’s drive to boost alternative fuels, as higher costs and lower demand close plants.

Shrinking distilling margins have resulted in a 14 percent drop in output this year to 827,000 barrels a day, or 12.7 billion gallons annually, Energy Department data show, 500 million gallons short of the amount refiners are mandated to use under a 2007 law that calls for escalating consumption of the biofuel. That would be the first yearly decrease since 1996.

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August 23rd, 2012

Ethanol futures, the best-performing energy commodity this year, is cheaper than gasoline, encouraging refiners to use the biofuel even if President Barack Obama’s administration ends a requirement to do so.

A 48 cent-per-gallon discount to gasoline provides companies including Exxon Mobil Corp. and Valero Energy Corp. (VLO) an opportunity to profit by blending the corn-based additive into fuel, while easing prices at the pump for consumers. Marketers may use ethanol as they look for the cheapest way to boost engine performance and reduce pollution.

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ethanol brokers

ethanol futures tumble

August 6th,2012

Ethanol futures fell in Chicago as rain and cooler weather in the U.S. Midwest provided some relief to drought-withered corn crops.

Ethanol tumbled after rain over the weekend improved the prospects for corn, the primary ingredient used to produce ethanol in the U.S. Distillers have responded to higher corn prices brought about by drought by cutting output by 16 percent to 809,000 barrels a day from a record 963,000 on Dec. 30.

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June 25th, 2012

Ethanol futures increased the most since March as corn used to make the fuel rose to the highest level since November.

The biofuel gained as the most-active December corn contract surged on forecasts that dry weather will continue to the end of June for most of the Midwest, reducing yields and raising the cost of ethanol production.

About 32 percent of the domestic corn crop is under stress, and temperatures will rise as the plants begin to pollinate, Chicago-based T-Storm Weather LLC said in a report. At least 50 percent of subsoil has been rated below normal since May 31, the forecaster said.

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June 12th, 2012

Ethanol futures tumbled the most in more than a week after the U.S. government forecast an increase in global corn inventories, signaling lower costs of producing the fuel.

Prices sank after the Agriculture Department said in its World Agricultural Supply and Demand Estimates that global corn stockpiles on Oct. 1, 2013, will be 155.74 million metric tons, up 2.2 percent from the May forecast. Ethanol in the U.S. is derived from the grain.

“The WASDE report was actually bearish,” said Ian Jackson, a trader at SCB & Associates LLC in Chicago. “You’re feeling better, not great. Any day that you can gain back a couple of pennies is good.”

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