Sept. 28 (Bloomberg) -- Ethanol futures fell for the first time this week on concern the European debt crisis will hamper demand for fuel.
Futures dropped after President Barack Obama said the response by European governments to the debt crisis on the continent hasn’t been adequate. Commodities such as gasoline, corn and crude oil declined.
“Global markets sold off today with commodities leading the way,” SCB & Associates LLC in Chicago wrote in a note to its clients.
Denatured ethanol for October delivery plummeted 4.3 cents, or 1.7 percent, to $2.534 a gallon on the Chicago Board of Trade, the biggest decline since Sept. 22. Futures, down 13 percent in September, are headed for its largest monthly drop since October 2008 and consecutive quarterly losses.
In cash market trading ethanol in Chicago decreased 5 cents, or 1.9 percent, to $2.575 a gallon and on the West Coast the biofuel fell 3.5 cents, or 1.3 percent, to $2.735, according to data compiled by Bloomberg.
Ethanol in the U.S. Gulf slid 2 cents, or 0.8 percent, to $2.605 a gallon and in New York the additive dropped 1.5 cents, or 0.6 percent, to $2.715.
Crude oil for November delivery declined $3.24 to settle at $81.21 a barrel on the New York Mercantile Exchange.
Gasoline for October delivery fell 4.48 cents, or 1.7 percent, to settle at $2.6507 a gallon in New York. The contract covers reformulated gasoline, which is made to be blended with ethanol before delivery to filling stations.
Corn futures for December delivery tumbled 21.5 cents, or 3.3 percent, to $6.3075 a bushel. Earlier, the grain touched $6.2875, the lowest since July 12. One bushel makes at least 2.75 gallons of ethanol in the U.S.
--Editors: Richard Stubbe, David Marino
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