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First-half ethanol output has been strong and inventories high

In Focus

As corn burns, excess ethanol credits help dampen demand

With corn prices racing higher and output falling, ethanol futures prices have risen 30 per cent over the past four weeks while New York gasoline futures have climbed only 12 per cent – reducing the economic incentive to blend fuel

AS DROUGHT devastates the US corn crop, relief from near-record prices may come from an unexpected quarter: oil companies, which may buy less ethanol than their government mandate suggests.

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