Ethanol Declines After U.S. Reports Slowing Demand for Corn
Ethanol futures declined for a second day, dropping with corn after the U.S. government said demand for the grain is slowing.
The biofuel fell 1.9 percent, the most in almost a month. The Agriculture Department reported Oct. 12 that in the week ended Oct. 7, exporters sold 4,232 metric tons of corn for delivery before Aug. 31, down from 1.26 million a year earlier, The U.S. is the world’s leading grower and exporter of corn.
“Anybody on the buy side is going to be pretty cautious right now,” said Will Babler, a broker at Atten Babler Risk Management LLC in Galena, Illinois. “From a real short run perspective, it’s just falling through on corn.”
Denatured ethanol for November delivery sank 4.7 cents, or 1.9 percent, to $2.383 a gallon on the Chicago Board of Trade. The price has risen 8.2 percent this year.
Corn for December delivery declined 15.5 cents to $7.3725 a bushel in Chicago. One bushel makes at least 2.75 gallons of ethanol.
Crude oil for November delivery slid 1 cent to $91.85 a barrel on the New York Mercantile Exchange.
Gasoline for November delivery fell 4.25 cents to $2.8503 a gallon on the Nymex. The contract covers reformulated gasoline, made to be blended with ethanol before delivery to filling stations.
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