Ethanol production in the U.S. increased to 920,000 barrels a day last week, according to the Energy Department.
Output jumped 1.8 percent, the biggest gain since April 27 and the highest amount since Feb. 10. Stockpiles fell 2.5 percent to 20.7 million barrels, the biggest weekly drop and lowest level since May 11.
Production of conventional gasoline blended with ethanol surged 4.9 percent to a record 5.5 million barrels a day, the department said.
Denatured ethanol for July delivery fell 1.7 cents, or 0.8 percent, to $2.019 a gallon at 10:40 a.m. New York time on the Chicago Board of Trade.
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