Ethanol Falls for First Time This Week on Greek Bailout Concern
Ethanol futures fell for the first time this week on concern that the European debt crisis will curtail fuel demand.
Futures dropped 0.9 percent after German Finance Minister Wolfgang Schaeuble told lawmakers in Berlin that Greece is missing its debt-cutting targets. Ethanol, made from corn in the U.S., is blended into gasoline to reduce crude oil use.
“The energy markets were lower,” said Matt Janney, a trader at Citigroup Global Markets Inc. in Chicago. “Everything was lower. It’s a macro thing.”
Denatured ethanol for March delivery slipped 1.9 cents, the most since Feb. 2, to $2.212 a gallon on the Chicago Board of Trade. Prices are down 11 percent from a year earlier.
In cash market trading, ethanol in New York slumped 4 cents, or 1.8 percent, to $2.25 a gallon and on the West Coast the additive lost 3 cents, or 1.3 percent, to $2.285, according to data compiled by Bloomberg.
Ethanol in the U.S. Gulf slid 2 cents, or 1 percent, to $2.235 a gallon and in Chicago the biofuel climbed 1 cent, or 0.5 percent, to $2.20.
Crude oil for March delivery declined $1.17, or 1.2 percent, to settle at $98.67 a barrel on the New York Mercantile Exchange.
Gasoline for March delivery fell 3.79 cents, or 1.3 percent, to settle at $2.9749 a gallon in New York. The contract includes reformulated gasoline, which is made to be blended with ethanol before delivery to filling stations.
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