Ethanol Declines for Third Day to Lowest Level in Two Weeks
Ethanol futures fell for a third day, reaching a two-week low as corn was little changed and gasoline slipped.
The biofuel extended the longest streak of declines in a month as gasoline dropped for a fourth day and corn advanced 0.1 percent after losing 4.7 percent in the previous two days. U.S. ethanol is made from corn and blended into gasoline.
“It’s still tracking grain to some extent,” said Will Babler, a broker at Atten Babler Risk Management LLC in Galena, Illinois. “Not a lot of new news in any direction on it.”
Denatured ethanol for November delivery sank 0.8 cent, or 0.3 percent, to $2.375 a gallon on the Chicago Board of Trade. The price has risen 7.8 percent this year.
Corn for December delivery increased 1 cent to $7.3825 a bushel in Chicago. One bushel makes at least 2.75 gallons of ethanol.
Crude oil for November delivery climbed 24 cents to $92.09 a barrel on the New York Mercantile Exchange.
Gasoline for November delivery slid 0.5 cent to $2.8453 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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