Ethanol Falls Second Day on Economic Pessimism, Corn Decline
Ethanol fell for a second day in Chicago, following corn lower, on concern that the global economy is slowing.
Futures declined after reports showed manufacturing in the U.S., China and Europe slumped and as sales of existing homes fell in May to a level lower than analysts had expected.
“All commodities were feeling the pain today and ethanol is being dragged off the cliff with the rest of them,” said Peyton Feltus, president of Randolph Risk Management in Dallas.
Denatured ethanol for July delivery slid 3.4 cents, or 1.6 percent, to $2.055 a gallon on the Chicago Board of Trade. Prices have fallen 6.7 percent this year.
In cash market trading, ethanol was unchanged in New York at $2.125 a gallon and on the West Coast at $2.155, according to data compiled by Bloomberg.
Ethanol in Chicago slumped 4 cents, or 1.9 percent, to $2.045 a gallon and in the U.S. Gulf the additive slipped 1 cent to $2.125.
Corn futures for December delivery declined 2.9 percent to settle at $5.50 a bushel on the CBOT, the biggest drop since June 5, on speculation that cooler weather and rain in the Midwest will aid crop development.
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