Ethanol futures fell the most in two weeks after a government report showed an inventory gain.
Futures declined a day after the Energy Department said stockpiles jumped 1.7 percent to 22.2 million barrels in the week ended April 27, a four-week high and the biggest weekly advance since March 16.
“That was a little negative,” said Jerrod Kitt, an analyst at Linn Group in Chicago. “You got another inventory build.”
Denatured ethanol for May delivery slipped 3.6 cents, or 1.6 percent, to settle at $2.175 a gallon on the Chicago Board of Trade, the biggest decline since April 18. Prices are down 1.3 percent this year.
In cash market trading, ethanol sank 2.5 cents to $2.235 a gallon in the U.S. Gulf and 2 cents to $2.25 in New York, data compiled by Bloomberg showed. Ethanol fell 1.5 cents to $2.185 in Chicago and 2 cents to $2.315 on the West Coast.
To contact the reporter on this story: Mario Parker in Chicago at firstname.lastname@example.org
To contact the editor responsible for this story: Dan Stets at email@example.com