CHICAGO, Ill. (Reuters) — Prices for American ethanol fell to the lowest levels in 13 years late last month, pressured by bigger-than-expected output and larger supplies of the corn-based biofuel, traders said.
Weekly U.S. Energy Information Administration data showed that ethanol production was up 6,000 barrels per day to an average of 1.048 million barrels per day, while stockpiles increased 139,000 barrels to 22.93 million barrels.
In the physical market, shipments in Chicago fetched US$1.15 per gallon, the lowest since June 2005, traders said. Chicago Board of Trade ethanol futures dropped to a low of $1.215 per gallon in midday trading Nov. 28 before trimming losses slightly to $1.218.
Excessive supplies and heavy selling in the Chicago market have weighed on ethanol prices for much of 2018.
