Oct. 3 (Bloomberg) -- Ethanol futures advanced in Chicago amid lower production and higher demand for U.S. exports.
Futures rose after a Sept. 29 Energy Department report showed exports of the biofuel averaged 98,000 barrels a day in July, the highest amount since the U.S. began tracking the data in 2010. That comes as production averaged 841,000 barrels a day in the most recent report, the lowest level in a year.
“Word on the street is that supply is tight in a couple key areas,” said Justin Dirico, senior ethanol trader at SCB & Associates LLC in Chicago. “Production’s down a little bit. It’s a short-term situation.”
Denatured ethanol for October delivery climbed 1.5 cents, or 0.6 percent, to $2.50 a gallon on the Chicago Board of Trade. Prices have gained 31 percent in the past year.
In cash market trading, ethanol on the West Coast plummeted 14 cents, or 5.1 percent, to $2.61 a gallon and in New York the biofuel sank 13 cents, or 4.8 percent, to $2.585, according to data compiled by Bloomberg.
Ethanol in the U.S. Gulf declined 10 cents, or 3.8 percent, to $2.505 a gallon and in Chicago the additive fell 7 cents, or 2.8 percent, to $2.48.
--Editors: Charlotte Porter, David Marino
To contact the reporter on this story: Mario Parker in Chicago at email@example.com
To contact the editor responsible for this story: Dan Stets at firstname.lastname@example.org