Ethanol Falls Most in Seven Weeks as Inventories Swell to Record
Ethanol futures in Chicago fell the most in more than seven weeks after a government report showed stockpiles grew for a 12th week.
Prices tumbled 1.9 percent after the Energy Department said ethanol inventories reached a record 22.1 million barrels while production of conventional gasoline mixed with the biofuel decreased 2.7 percent to 5.1 million barrels a day.
“They’re tucking it away on any tank they can find,” said Mike Blackford, a consultant at INTL FCStone in Des Moines, Iowa. “You’re not going to see a change or people get excited about ethanol until you start seeing stocks dwindle.”
Denatured ethanol for April delivery 4.3 cents to $2.248 a gallon on the Chicago Board of Trade, the steepest decline since Jan. 12. Prices have gained 2 percent this year.
In cash market trading, ethanol in the U.S. Gulf decreased 2 cents, or 0.9 percent, to $2.315 a gallon and on the West Coast the biofuel fell 2 cents, or 0.8 percent, to $2.365, according to data compiled by Bloomberg.
Ethanol in Chicago slipped 0.5 cent to $2.245 a gallon and in New York the additive sank 0.5 cent to $2.29.
To contact the reporter on this story: Mario Parker in Chicago at email@example.com
To contact the editor responsible for this story: Dan Stets at firstname.lastname@example.org