Ethanol futures snapped the longest streak of gains since March as corn and gasoline dropped on signs of ample supply.
Prices declined after rising for three days as corn fell after the Agriculture Department said about 53 percent of the crop was planted as of April 29, above the average for the previous five years of 27 percent. Gasoline, with which ethanol is blended, dropped after Delta Air Lines Inc. agreed to buy a ConocoPhillips (COP:US) refinery that was to be shuttered.
“Ethanol was a follower of corn and gasoline,” said Terry Reilly, an analyst at Citigroup Global Markets Inc. in Chicago. “We’ve got a lot of corn coming online that should allow for a lot of these ethanol plants to hit positive levels.”
Denatured ethanol for May delivery slipped 1.7 cents, or 0.8 percent, to settle at $2.211 a gallon on the Chicago Board of Trade. Prices are up 0.4 percent this year.
In cash-market trading, ethanol was unchanged in New York at $2.27 a gallon, in Chicago at $2.20, in the U.S. Gulf at $2.26 and on the West Coast at $2.335, according to data compiled by Bloomberg.
Corn futures for July delivery dropped 5.25 cents, or 0.8 percent, to $6.29 a bushel in Chicago.
Gasoline for June delivery fell 2.75 cents, or 0.9 percent, to settle at $3.0971 a gallon on the New York Mercantile Exchange. Gasoline has declined 8.6 percent since March 30, paring the 2012 gain to 15 percent.
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