Dec. 12 (Bloomberg) -- Ethanol futures slipped for a second day in Chicago amid uncertainty regarding Europe’s credit rating and as corn dipped.
Futures declined after Moody’s Investors Service said it will review the credit ratings of all European Union countries and as corn slid for a second day. The grain is used to make the fuel in the U.S.
“Ethanol prices took a cue from its feedstock and ended the day nearly unchanged also on thinner than usual volume,” SCB & Associates LLC wrote in a report to clients today.
Denatured ethanol for January delivery fell 0.1 cent to $2.114 a gallon on the Chicago Board of Trade, the lowest price since Dec. 10, 2010. Futures have fallen 11 percent this year, heading for the first yearly decline since 2008.
In cash market trading, ethanol in New York plunged 13 cents, or 5.1 percent, to $2.42 a gallon and on the West Coast the additive dropped 10 cents, or 3.9 percent, to $2.45, according to data compiled by Bloomberg.
Ethanol in the U.S. Gulf slid 7.5 cents, or 3 percent, to $2.45 a gallon and in Chicago the biofuel decreased 2.5 cents, or 1.1 percent, to $2.30.
Corn for March delivery slumped 0.25 cent to $5.94 a bushel in Chicago. One bushel makes at least 2.75 gallons of ethanol.
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