H2 With Lower Energy Cost
EPA Cleans Up NonRoad Diesel

Ethanol on the Board of Trade


The New York Board of Trade introduced a futures contract for sugar-derived ethanol Friday and is introducing an options contract today. (Story.) The Chicago Board of Trade (CBOT) plans to introduce a futures contract for corn-based ethanol late this year.

Futures trading in ethanol, derived in the United States primarily from Midwest corn, could reduce cost through more efficient hedging and pricing.

A recent spike in U.S. ethanol demand has triggered price hikes and fluctuations, creating an industry clamor for the futures contract, a tool that also could reduce volatility.

Demand, driven by use of ethanol as a replacement for MTBE and by the high-cost of petroleum, should continue to rise.

Comments

The comments to this entry are closed.