Oct. 4 (Bloomberg) -- Ethanol futures fell in Chicago on concern that a weak global economy will curb fuel consumption.
The biofuel declined 1.7 percent and gasoline dropped 0.9 percent on speculation that European policy makers may have to renegotiate terms of Greece’s bailout. Ethanol is blended with gasoline to stretch supply and meet federal mandates.
“It’s all about outside markets,” said Mike Blackford, a consultant at INTL FCStone in Des Moines, Iowa. “It’s the entire euro zone. Everyone’s worried about it.”
Denatured ethanol for October delivery plummeted 4.2 cents to $2.458 a gallon on the Chicago Board of Trade. Futures have risen 28 percent in the past year.
Gasoline for November delivery dropped 2.26 cents to settle at $2.4884 a gallon on the New York Mercantile Exchange, the lowest level since Feb. 11.
In cash market trading, ethanol was unchanged in the U.S. Gulf at $2.505 a gallon and on the West Coast at $2.61, according to data compiled by Bloomberg.
Ethanol in New York slid 0.5 cent to $2.58 a gallon and in Chicago the biofuel decreased 0.5 cent to $2.475.
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