kornunleashed

Ethanol futures advanced for a second day in Chicago trading on concerns that flooding in the Midwest will damage the corn crop and thus raise the production costs for the fuel. The gasoline additive tends to move in tandem with its primary production input, so it followed corn prices higher on Friday as the National Oceanic and Atmospheric Administration forecast an above-average risk of flooding for parts of the "corn belt".

Denatured ethanol for April delivery surged 8.2 cents, or 3.4 percent to $2.485 a gallon on the CBOT. Futures prices are up 57 percent over the past year. Ethanol soared even higher in cash market trading, as corn for May delivery jumped 5.7% to $6.835 a bushel in Chicago. One bushel of corn makes about 2.75 gallons of ethanol.

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