Aug. 22 (Bloomberg) -- Ethanol futures fell for the first time in four days after stockpiles of the fuel increased from a week earlier.
Prices declined after the Energy Department said inventories climbed 46,000 barrels to 18.5 million, up 1.4 percent from a year earlier. Production of conventional gasoline blended with ethanol was steady at 5.42 million barrels a day.
“It was just a knee-jerk reaction that you didn’t get a draw,” said Jerrod Kitt, an analyst at Linn Group in Chicago.
Denatured ethanol for September delivery fell 0.3 cent to settle at $2.664 a gallon on the Chicago Board of Trade. The futures have gained 21 percent this year.
In cash market trading, ethanol rose 2 cents to $2.73 a gallon in New York and 0.5 cent to $2.79 on the West Coast, data compiled by Bloomberg showed. The price fell 1.5 cents to $2.635 in Chicago and 1.5 cents to $2.695 on the Gulf Coast.
The value of Renewable Identification Numbers, known as RINs, fell 4 percent to 3.65 cents, data compiled by Bloomberg show. They are credits that help the government track whether refiners are meeting 2012 federal ethanol use mandates.
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