Ethanol fell for a second day as inventories climbed for the seventh week in a row.
Ethanol stockpiles rose 5.8 percent to 20.9 million barrels last week, the Energy Department said Feb. 1, the highest level since the department began keeping weekly records in June 2010. Production rose to 939,000 barrels a day, the first advance this year.
“They are simply running out of room and storage and because of that the biofuels have slowed down,” Jim Damask, a manager at Biofuelsconnect, a Jupiter, Florida-based alternative energy broker, said by phone. “The need for ethanol is just less than what we’ve seen.”
Denatured ethanol for February delivery retreated 1.5 cents, or 0.7 percent, to $2.131 a gallon on the Chicago Board of Trade. The contract expired today. The more-active March contract was unchanged at $2.173.
In cash market trading, ethanol in Chicago declined 1.25 cents, or 0.6 percent, to $2.1175 a gallon, according to data compiled by Bloomberg. In the U.S. Gulf, the additive lost 3.5 cents, or 1.6 percent, to $2.21.
Ethanol on the West Coast fell 1 cent, or 0.5 percent, to $2.235 a gallon and in New York the biofuel retreated 4.5 cents, or 2 percent, to $2.185.
Gasoline for March delivery rallied 4.55 cents, or 1.6 percent, to settle at $2.9144 a gallon on the New York Mercantile Exchange.
Corn futures for March delivery advanced 1.5 cents to $6.445 a bushel in Chicago. The settlement was the highest since Jan. 11.
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