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Ethanol declined for the fifth time in six days in Chicago as demand for gasoline slipped amid rising supply.
Prices sank on concern that consumption isn’t robust enough to eat away at stockpiles that have advanced for two weeks in a row, according to Energy Department data. Demand for gasoline fell 3.7 percent last week, the first decline in four weeks, MasterCard’s SpendingPulse report showed today. Ethanol is blended into gasoline.
“There still isn’t great demand,” said Ian Jackson, a trader at SCB & Associates LLC in Chicago. “There isn’t great demand in the products like gasoline either. We’re kind of stuck in this no-man’s land.”
Denatured ethanol for June delivery fell 0.7 cent, or 0.3 percent, to settle at $2.003 a gallon on the Chicago Board of Trade. The contract expired today. Futures have fallen 9.1 percent this year. Ethanol for July fell 0.3 cent to $2.031.
The MasterCard report showed that drivers bought 9.01 million barrels of gasoline in the week ended June 1, down from 9.36 million the week before. Ethanol supply climbed 0.5 percent to 21.5 million barrels in the week ended May 25, Energy Department data showed.
In spot market trading, ethanol sank 0.5 cent to $2.05 a gallon in New York and in the U.S. Gulf, according to data compiled by Bloomberg. Ethanol in Chicago increased 0.5 cent to $1.985 a gallon and on the West Coast the biofuel jumped 0.5 cent to $2.20.
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