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Nov. 23 (Bloomberg) -- Ethanol futures sank to the lowest price in almost seven weeks in Chicago amid concern that the global economy is slowing and will curb fuel consumption.
Futures slumped 2.3 percent after Germany failed to get bids for 35 percent of the 10-year bonds it offered today and after U.S. government reports showed orders for durable goods fell and initial jobless claims increased.
“Markets showed losses across the board ahead of the Thanksgiving holiday in the U.S., with equities, energies and corn all off over 1.5 percent for the session as fears continue to hit the market over the European debt crisis,” SCB & Associates LLC in Chicago said in a note to clients.
Denatured ethanol for December delivery sank 5.9 cents to $2.497 a gallon on the Chicago Board of Trade, the lowest price since Oct. 7. The futures have climbed 5 percent this year.
In cash market trading, ethanol was unchanged in the U.S. Gulf at $2.965 a gallon and in Chicago the additive lost 4 cents, or 1.4 percent, to $2.925, according to data compiled by Bloomberg.
Ethanol in New York decreased 2.5 cents, or 0.8 percent, to $2.95 a gallon and on the West Coast the biofuel declined 1.5 cents, or 0.5 percent, to $3.02.
Crude oil for December delivery dropped $1.84, or 1.9 percent, to $96.17 a barrel on the New York Mercantile Exchange. Futures are up 5.2 percent this year.
Gasoline for December delivery tumbled 4.41 cents, or 1.7 percent, to $2.5177 a gallon in New York. The contract includes reformulated gasoline, which is made to be blended with ethanol before delivery to filling stations.
--Editors: Charlotte Porter, Bill Banker
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