Ethanol Rises to Seven-Month High on Lower Output and Corn Costs

Bloomberg

By Mario Parker - Jul 5, 2012 2:19 PM CT
Ethanol futures rose to the highest price in seven months as producers tempered output in the face of more expensive corn.

Prices increased as corn, the primary ingredient used to make the fuel, jumped to a nine-month high as the corn-rich Midwest bakes under a heat wave. An Energy Department report today showed ethanol production last week sank to the lowest level since Sept. 23.

“It’s up pretty good,” said Jim Damask, a manager at Biofuelsconnect, a Jupiter, Florida-based alternative energy broker. “You’ve got bad weather for corn, so ethanol’s up on that. We’ve seen producers trimming production because of margins.”

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