April 3 (Bloomberg) -- Ethanol declined from the highest price in more than a week in Chicago amid near-record inventory.
Futures slipped following last week’s Energy Department report that stockpiles totaled 22.6 million barrels in the week ended March 23, down 0.4 percent from a record 22.7 million. The fuel is blended with gasoline to stretch supplies and meet federal mandates.
“We need margins to be negative long enough that we shut in production or we need stronger exports,” said Ian Jackson, a trader at SCB & Associates in Chicago. “Right now, not enough of either is going on.”
Denatured ethanol for April delivery fell 0.4 cent to $2.281 a gallon on the Chicago Board of Trade. Futures yesterday reached the highest settlement price since March 23. Prices have climbed 3.5 percent this year.
In cash market trading, ethanol was unchanged in New York at $2.345 a gallon and in Chicago the additive increased 0.5 cent to $2.265, according to data compiled by Bloomberg.
Ethanol in the U.S. Gulf added 0.5 cent to $2.315 a gallon and on the West Coast the biofuel gained 0.5 cent to $2.385.
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