Feb. 29 (Bloomberg) -- Ethanol futures in Chicago fell for the first time in more than a week after a government report showed that supplies increased for an 11th consecutive week.
Prices sank after the Energy Department said ethanol stockpiles jumped to a record 22 million barrels last week even as production fell 2.5 percent, the most since September, to 896,000 barrels a day.
“Today’s lower DOE production number was no match for the continuing ethanol inventory glut and weak gasoline demand,” said Michael Breitenbach, an analyst and trader at Blue Ocean Brokerage LLC in New York.
Denatured ethanol for March delivery slipped 0.3 cent to $2.26 a gallon on the Chicago Board of Trade, the first decline since Feb. 21. Prices gained 4.3 percent this month.
Distillers are losing 13 cents per gallon of ethanol, based on current prices for corn and the biofuel and assuming a bushel of corn generates 2.75 gallons of ethanol, according to data compiled by Bloomberg.
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