Ethanol fell a fifth day in Chicago, extending the longest streak of losses in more than a month, as corn declined.
Futures followed corn lower on speculation corn’s 57 percent surge since June 15 will prompt farmers to boost sales of the grain. One bushel of corn is enough to make at least 2.75 gallons of ethanol. The biofuel will consume 42 percent of this year’s crop, the U.S. Agriculture Department forecast Aug. 10.
“We’ve had spillover, obviously, from the corn market,” said Mike Blackford, a consultant at INTL FCStone in Des Moines, Iowa. “Ethanol is following suit.”
Denatured ethanol for September delivery fell 0.6 cent, to settle at $2.58 a gallon on the Chicago Board of Trade today. Prices have gained 17 percent this year.
In cash market trading, ethanol slipped 2.5 cents in New York to $2.65 a gallon, sank 6.5 cents in Chicago at $2.656, slipped 6.5 cents in the U.S. Gulf to $2.62 and lost 1 cent on the West Coast at $2.73, according to data compiled by Bloomberg at 4 p.m. New York time.
Corn for December delivery dropped 5.25 cents to $7.955 a bushel in Chicago. Ethanol has traded in the same direction of corn each of the last seven sessions.