Bloomberg News

Ethanol Declines on Concern Unemployment to Slow Economic Growth

July 06, 2012

Ethanol futures fell in Chicago after a government report that showed fewer jobs than expected were added in June sparked concern that economic growth may slow, curbing fuel demand.

Prices snapped a four-day streak of gains after Labor Department data showed June payrolls climbed 80,000 after a 77,000 increase in May. That compares to a 100,000 gain projected by economists in a Bloomberg News survey.

“Energy futures declined as weak U.S. job numbers strengthened anxiety that a frail global economy will put more pressure on demand,” SCB & Associates LLC wrote in an e-mailed note to clients today.

Denatured ethanol for August delivery fell 3.6 cents, or 1.5 percent, to $2.404 a gallon on the Chicago Board of Trade, the biggest decline since June 21. Prices have increased 9.1 percent this year.

In cash market trading, ethanol on the West Coast added 3 cents, or 1.2 percent, to $2.545 a gallon and in New York the fuel advanced 2 cents, or 0.8 percent, to $2.48, according to data compiled by Bloomberg.

Ethanol in the U.S. Gulf declined 2 cents, or 0.8 percent, to $2.44 a gallon and in Chicago the additive slipped 0.5 cent to $2.385.

Oil for August delivery fell $2.77, or 3.2 percent, to settle at $84.45 a barrel on the New York Mercantile Exchange. Crude, which fell 0.6 percent this week, is down 15 percent this year.

To contact the reporter on this story: Mario Parker in Chicago at mparker22@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net


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