Feb. 15 (Bloomberg) -- Ethanol futures fell for a second day in Chicago after a government report showed a record ninth straight weekly gain in inventories.
Prices declined 0.8 percent. The Energy Department said ethanol stockpiles rose 2 percent to an all-time high of 21.5 million barrels last week. Production slipped 0.5 percent to 928,000 barrels a day.
“We continue to build stocks and it’s an issue,” said Mike Blackford, a consultant at INTL FCStone in Des Moines, Iowa. “Everybody sees what’s out there.”
Denatured ethanol for March delivery fell 1.7 cents to $2.196 a gallon on the Chicago Board of Trade, the lowest level since Feb. 6. Prices are down 10 percent from a year ago.
In cash market trading, ethanol was unchanged in New York at $2.29 a gallon, in Chicago at $2.18, in the U.S. Gulf at $2.235 and on the West Coast at $2.29 a gallon, according to data compiled by Bloomberg.
Ethanol is blended with gasoline to augment supply and meet federal mandates.
There are 209 ethanol distilleries in the U.S., with the capacity to produce 14.8 billion gallons of the biofuel, annually, according to the Renewable Fuels Association, a Washington-based trade group.
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