March 14 (Bloomberg) -- Ethanol futures snapped a three-day streak of gains after an Energy Department report showed an increase in the amount of days of supply.
Futures sank after the government said stockpiles were little changed at 22.04 million barrels the week ended March 9, compared with 22.07 the prior week. That’s equal to 24.7 days of supply, up from 24.3.
“Everyone’s still talking about the stockpiles,” said Matt Janney, a trader at Citigroup Global Markets Inc. in Chicago. “Even though they fell a little bit today, people want to focus on the glut here.”
Denatured ethanol for April delivery fell 0.7 cent, or 0.3 percent, to $2.304 a gallon on the Chicago Board of Trade, the first decline since March 8. Prices have gained 4.6 percent this year.
In cash market trading, ethanol was unchanged in Chicago at $2.285 a gallon and in the U.S. Gulf at $2.345, according to data compiled by Bloomberg.
Ethanol in New York increased 3.5 cents, or 1.5 percent, to $2.355 a gallon and on the West Coast the biofuel dropped 2.5 cents, or 1 percent, to $2.41.
The renewable fuel is blended with gasoline to stretch supply and meet federal mandates.
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