Ethanol Extends Longest Losing Streak in Month on Greek Crisis
Ethanol extended its longest streak of losses in almost a month on concern that Greece’s debt crisis will spread and choke fuel demand.
Future fell for a fourth day after Greek President Karolos Papoulias failed to secure agreement on a unity government and German Chancellor Angela Merkel’s party lost a regional election to the main opposition Social Democratic Party.
“This is one of those days where you think your quote device has low voltage,” said Peyton Feltus, president of Randolph Risk Management in Dallas. “The global economy is set to contract.”
Denatured ethanol for June delivery slipped 0.5 cent to settle at $2.103 a gallon on the Chicago Board of Trade, the lowest price since Dec. 16. The drop marked the most consecutive losses since April 18. Ethanol has fallen 4.5 percent this year.
In cash market trading, ethanol on the West Coast dropped 1.5 cents, or 0.7 percent, to $2.28 a gallon and in the U.S. Gulf the biofuel increased 0.5 cent to $2.175, according to data compiled by Bloomberg.
Ethanol in Chicago added 0.5 cent to $2.105 a gallon and in New York the biofuel rose 1.5 cents, or 0.7 percent, to $2.185.
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