Feb. 14 (Bloomberg) -- Ethanol fell the most in more than a week in Chicago on speculation that demand won’t be robust enough to lower record stockpiles.
Futures declined for the second time in three days before the Energy Department reports tomorrow on inventories, which gained eight weeks in a row to reach 21.1 million barrels in the week ended Feb. 3. Ethanol is blended with gasoline to stretch supply.
“We continue to have a lot of material in the prompt months,” said Justin Dirico, senior ethanol trader at SCB & Associates in Chicago.
Denatured ethanol for March delivery fell 2.2 cents, or 1 percent, to $2.213 a gallon on the Chicago Board of Trade, the steepest decline since Feb. 2. Prices are down 9.6 percent from a year ago.
Ethanol inventories are 7.6 percent higher than a year earlier, the Energy Department said in its Feb. 8 report. Demand slipped to an 11-week low that week.
In cash market trading, ethanol in Chicago sank 2 cents, or 0.9 percent, to $2.18 a gallon and in the U.S. Gulf the biofuel lost 2 cents, or 0.9 percent, to $2.235, according to data compiled by Bloomberg.
Ethanol in New York slid 1 cent, or 0.4 percent, to $2.29 a gallon and on the West Coast the additive dropped 1.5 cents, or 0.7 percent, to $2.29.
--Editors: Richard Stubbe, Bill Banker
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