Ethanol Weakens Against Gasoline on Slack Use and Ample Supply
From Bloomberg News
By Mario Parker
The additive’s discount to the motor fuel expanded to 33.6 cents a gallon from 31.68 cents yesterday, based on December futures prices. Gasoline’s premium was 99.8 cents on Sept. 28.
Ethanol stockpiles of 18.1 million barrels in the week ended Nov. 2 were 10 percent higher than a year earlier, according to Energy Department data released Nov. 7. Consumption of gasoline fell the most since Jan. 7, 2005, after Hurricane Sandy shut filling stations and kept drivers off the roads in the heavily populated U.S. Northeast.
Denatured ethanol for December delivery climbed 0.6 cent, or 0.3 percent, to $2.343 a gallon on the Chicago Board of Trade. Futures have risen 6.4 percent this year.
Gasoline for December delivery advanced 2.52 cents, or 1 percent, to $2.679 a gallon on the New York Mercantile Exchange. The contract covers reformulated gasoline, which is made to be blended with ethanol before delivery to filling stations.
Corn for March delivery gained 3 cents, or 0.4 percent, to $7.2925 a bushel in Chicago. One bushel makes at least 2.75 gallons of ethanol.
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