Ethanol Rises Most in Almost Three Weeks on Increased Blending

Bloomberg
By Mario Parker - Apr 19, 2012 3:14 PM CT

Ethanol in Chicago rose the most in almost three weeks on increased demand for the fuel to be blended with gasoline.

Prices climbed a day after the Energy Department said production of conventional gasoline blended with ethanol, a measure of consumption beyond what’s mandated by the government, swelled to a record 5.4 million barrels a day, spurred by the additive’s discount to the motor fuel.

“You had a really good blending number, which was surprising,” said Jerrod Kitt, an analyst at Linn Group in Chicago. “It was really strong. That dollar discount to gasoline continues to work its magic.”

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