Ethanol futures slumped to a two- week low in Chicago as corn and gasoline declined.
Futures sank as the motor fuel declined after international talks with Iran over its nuclear program led to an agreement to reconvene in May, easing concern that crude supplies will be disrupted. Separately, corn, the primary ingredient used to make the biofuel in the U.S., fell on speculation favorable weather will boost crops.
“We didn’t get much help from anything today,” said Mike Blackford, a consultant at INTL FCStone in Des Moines, Iowa. “You had the gasoline market fall apart, so no help there. With no help out of corn or energies, we just sank.”
Denatured ethanol for May delivery declined 2 cents, or 0.9 percent, to settle at $2.197 a gallon on the Chicago Board of Trade, the lowest price since March 29. Futures have fallen 0.3 percent this year.
In cash market trading, ethanol on the West Coast slipped 2.5 cents, or 1.1 percent, to $2.33 a gallon, according to data compiled by Bloomberg. In New York, the additive decreased 2.5 cents, or 1.1 percent, to $2.255.
Ethanol in Chicago plummeted 1.5 cents, or 0.7 percent, to $2.185 a gallon, and in the U.S. Gulf the biofuel fell 0.5 cent to $2.245.
Corn futures for July delivery declined 1.2 percent to close at $6.1325 a bushel at 1:15 p.m. on the Chicago Board of Trade.
Gasoline for May delivery dropped 7.91 cents, or 2.4 percent, to settle at $3.267 a gallon on the New York Mercantile Exchange. The contract covers reformulated gasoline, or RBOB, which is mixed with ethanol before delivery to filling stations.
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