Illinois corn marketers predict big increase in E85 availability in 2008

The Illinois Corn Marketing Board projects a massive increase in E85 availability after Underwriters Laboratories certifies ethanol pumps as safe, which is expected by year-end, A spokesman for the Board said that major fuel dispensers such as Wal-Mart and Kroger, are waiting on certification before expanding E85 availability.

US ethanol consumption has risen 46 percent in the past 12 months, according to Bloomberg. According to the news service the increased spread between gasoline and ethanol prices, now $1.02, is encouraging blenders to use more discretionary ethanol. October futures for ethanol were up 3.4 cents on September 27 after reaching a 26-month low of $1.515 per gallon. Ethanol prices have declined more than 30% in 2007, owing to problems with demand stimulation and transportation infrastructure. Mandates in several states and federal mandates are expected to significantly increase ethanol consumption, narrowing the price spread between gasoline and ethanol.

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