Oct. 17 (Bloomberg) -- Ethanol futures advanced to almost a five-week high in Chicago on lower inventories and production of the biofuel.
Prices gained for a third session following a Oct. 12 Energy Department report that stockpiles amounted to 16.9 million barrels, the lowest level since the week ended Dec. 31, while production was 860,000 barrels a day.
“We’re still looking for material in the New York Harbor,” said Justin Dirico, senior ethanol trader at SCB & Associates LLC in Chicago. “There’s definitely barrels needed in the prompt months.”
Denatured ethanol for November delivery rose 3.1 cents, or 1.2 percent, to $2.732 a gallon on the Chicago Board of Trade, the highest price since Sept. 13. Futures have gained 15 percent this year and are up 4 percent since the report.
In cash market trading, ethanol in Chicago gained 4 cents, or 1.4 percent, to $2.815 a gallon and in New York the biofuel increased 2.5 cents, or 0.9 percent, to $2.92, according to data compiled by Bloomberg.
Ethanol on the West Coast added 2 cents, or 0.7 percent, to $2.915 a gallon and in the U.S. Gulf the additive was unchanged at $2.825.
The tighter supply for ethanol was exacerbated when a train carrying the fuel for Archer Daniels Midland Co. derailed on Oct. 7, forcing residents of Tiskilwa, Illinois, to evacuate, Dirico said.
--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