Oct. 20 (Bloomberg) -- Ethanol futures sank to the lowest price in more than a week as production rose to the highest level in two months.
Futures fell a third day a day after the Energy Department reported production of ethanol swelled to 908,000 barrels a day last week, the highest level since Aug. 5 and supply climbed to 17.1 million barrels, rebounding from the lowest amount since December.
“It’s been so strong, really for the last month and a half, so maybe it’s taking a little bit of a breather here,” said Will Babler, a broker at First Capitol Risk Management in Galena, Illinois. “Everyone’s, seasonally, trying to get back up to full production or are at full production.”
Denatured ethanol for November delivery fell 5 cents, or 1.9 percent, to $2.632 a gallon on the Chicago Board of Trade, the biggest decline since Sept. 30 and the lowest price since Oct. 12. Futures have gained 11 percent this year.
In cash market trading ethanol was unchanged in the U.S. Gulf at $2.70 a gallon and in New York the additive increased 0.5 cent to $2.855, according to data compiled by Bloomberg.
Ethanol on the West Coast added 1.5 cents, or 0.5 percent, to $2.98 a gallon and in Chicago the alternative fuel decreased 1 cent, or 0.4 percent, to $2.74.
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