Ethanol futures in Chicago rose for the first time this week after a government report showed that stockpiles of the biofuel and gasoline declined.
Prices increased 0.3 percent after the Energy Department said ethanol stockpiles shrank 3.5 percent to 21.8 million barrels, the lowest amount since Feb. 17 and the largest decline since Dec. 9. Gasoline inventories fell 4.28 million barrels to 217.6 million, compared with a 1.38 million-barrel decrease forecast in a Bloomberg News survey.
“It rallied the whole energy complex,” said Justin Dirico, senior ethanol trader at SCB & Associates in Chicago. “The DOE finally reported a decent draw.”
Denatured ethanol for May delivery rose 0.7 cent to settle at $2.236 a gallon on the Chicago Board of Trade. Futures have gained 1.5 percent this year.
In cash market trading, ethanol on the West Coast decreased 2.5 cents, or 1.1 percent, to $2.345 a gallon and in the U.S. Gulf the additive increased 0.5 cent to $2.265, according to data compiled by Bloomberg.
Ethanol in Chicago climbed 0.5 cent to $2.21 a gallon and in New York the biofuel slipped 2 cents, or 0.9 percent, to $2.28.
Ethanol is blended with gasoline to stretch supply and meet federal mandates.
Gasoline for May delivery climbed 4.59 cents, or 1.4 percent, to settle at $3.2955 a gallon on the New York Mercantile Exchange. The contract includes reformulated gasoline, which is made to be blended with ethanol before delivery to filling stations.
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