Ethanol futures fell for a second day in Chicago on record stockpiles and a drop in corn prices.
Futures dropped 1.2 percent. Stockpiles (DOESFETH) of ethanol rose to a record 22.7 million barrels in the week ended March 16, according to the Energy Department. A March 30 Agriculture Department report may show that farmers will increase corn planting this year because of favorable weather, lowering ethanol production costs.
“There’s selling pressure in the front,” said Ian Jackson, a trader at SCB & Associates in Chicago. “There’s a lot of product out there. People are also flattening out positions ahead of Friday’s big report.”
Denatured ethanol for April delivery slipped 2.7 cents to $2.248 a gallon on the Chicago Board of Trade, the lowest price since March 8. Prices have increased 2 percent this year.
In cash market trading, ethanol in the U.S. Gulf fell 1.5 cents, or 0.7 percent, to $2.30 a gallon and in Chicago the additive lost 1 cent, or 0.4 percent, to $2.25, according to data compiled by Bloomberg.
Ethanol in New York dropped 0.5 cent to $2.355 a gallon and on the West Coast the biofuel increased 2.5 cents, or 1 percent, to $2.425.
Corn futures for May delivery fell 7 cents, or 1.1 percent, to $6.3075 a bushel in Chicago. One bushel makes at least 2.75 gallons of ethanol.
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