Ethanol prices hit 3-year highs as corn crop prospects weaken

In Illinois, ethanol futures prices in Chicago have risen to three-year highs as the nation’s corn crop sizzles under summer heat. The Agriculture Department said U.S. corn rated in good or excellent condition fell to 66 percent in the week ended July 17 from 69 percent a week earlier, meaning that corn prices are likely to get higher with direct knock on effects for ethanol prices.

Bloomberg reported that denatured ethanol for August delivery advanced 5.2 cents, or 1.8 percent, to settle at $2.911 a gallon on the Chicago Board of Trade, the highest settlement price since June 27, 2008. Prices are up 22 percent this year, it said.