Ethanol rises 12.1 cents after report predicts rising production costs

In Illinois, ethanol has risen 12.1 cents to $2.344 a gallon, the largest gain since March 31, 2011, after a government report showed an unexpected shortage in corn inventories that would drive up production costs. The report indicated that corn stockpiles total 988 million bushels, down 12% from last year.“The trade got caught off guard,” said Mike Blackford, a consultant at INTL FCStone Group in Des Moines, Iowa. “Ethanol followed. It’s kind of a big circle when you get down to it.”

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