Oct. 17 (Bloomberg) -- Ethanol’s strengthened versus gasoline as futures for the motor fuel declined after an American Petroleum Institute showed oil inventories increased last week.
Ethanol’s discount against gasoline shrank 3.72 cents at settlement to 85.69 cents a gallon, according to data compiled by Bloomberg.
“The move was more or less associated with the technicals in the crude oil itself,” said Mike Blackford, a consultant at Intl FCStone in Des Moines, Iowa.
Denatured ethanol for November delivery dropped 1.7 cents to settle at $1.791 a gallon on the Chicago Board of Trade.
November-delivery gasoline declined 5.42 cents, or 2 percent, to settle at $2.6479 a gallon on the New York Mercantile Exchange. The contract covers reformulated gasoline, made to be blended with ethanol before delivery to filling stations.
Corn for December settlement gained 0.25 cent to $4.43 a bushel in Chicago. Prices have slumped this year as the U.S. is harvesting a record crop estimated at 13.8 billion bushels.
In cash market trading, ethanol declined 7 cents to $2.26 a gallon in New York and fell 4 cents to $2.285 on the West Coast, data compiled by Bloomberg show. It rose 2 cents to $2.10 a gallon in Chicago and 1 cent to $2.185 on the Gulf Coast.
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