Iowa Public Television


Ethanol Futures Added to CBOT

posted on March 25, 2005

Ethanol futures debuted this week on the Chicago Board of Trade, joining corn, soybeans and wheat among the agricultural contracts bought and sold on the exchange.

Bernard Dan, the exchange's president and CEO, said trading in the corn-based gasoline additive was added following close collaboration with producers and refiners. He said it should provide an efficient tool for managing price risk within the ethanol market.

Nationwide production of ethanol is expected to reach 4 billion gallons this year, up from 3.4 billion gallons last year and 2.8 billion gallons in 2003. Production is centered in the Midwest, where Iowa surpassed Illinois last year as the leading ethanol-producing state.

Tags: agriculture biofuels ethanol news renewable fuels soybeans wheat