Dec. 13 (Bloomberg) -- Ethanol futures faltered for a third day in Chicago amid record production and ample inventories.
Futures have fallen 3.2 percent since a Dec. 7 Energy Department report showed ethanol production at a record 954,000 barrels a day in the week ended Dec. 2 and stockpiles at 17.9 million barrels, the highest since Aug. 19.
“There’s a lot of sellers right now and not a lot of buyers,” said Jim Damask, a manager at BiofuelsConnect, a Jupiter, Florida-based alternative energy broker. “There’s plenty of material to be bought.”
Denatured ethanol for January delivery fell 0.3 cent to $2.111 a gallon on the Chicago Board of Trade, the lowest price since Dec. 10, 2010. Futures have fallen 11 percent this year, heading for the first yearly decline since 2008.
In cash market trading, ethanol in the U.S. Gulf slipped 7.5 cents, or 3.1 percent, to $2.375 a gallon and on the West Coast the additive decreased 5 cents, or 2 percent, to $2.40, according to data compiled by Bloomberg.
Ethanol in New York increased 3 cents, or 1.2 percent, to $2.45 a gallon and in Chicago the biofuel added 2.5 cents, or 1.1 percent, to $2.325.
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