Oct. 9 (Bloomberg) -- Ethanol’s discount to gasoline shrank as nationwide inventories of the biofuel fell to the lowest level in three years of data.
The ethanol-gasoline spread narrowed 4.74 cents to 89.32 cents a gallon at 11:45 a.m., according to data compiled by Bloomberg.
The biofuel advanced after a government report showed U.S. stockpiles slumped 119,000 barrels, or 0.8 percent, to 15.4 million barrels in the week ended Oct. 4, the least in U.S. Energy Information Administration data going back to 2010. Production slipped to 868,000 barrels a day from 875,000 the prior week. There were no U.S. imports.
“We have tight stocks and imports haven’t been anywhere near what we expected,” said Will Babler, a broker at Atten Babler Risk Management LLC in Galena, Illinois. “That’s giving support to prices.”
Denatured ethanol for November delivery advanced 2.2 cents to $1.712 a gallon on the Chicago Board of Trade. Futures have dropped 22 percent this year.
November-delivery gasoline slipped 2.54 cents to $2.6052 a gallon on the New York Mercantile Exchange. The contract covers reformulated gasoline, made to be blended with ethanol before delivery to filling stations.
Corn for December delivery added 2 cents to $4.4375 a bushel. The December crush spread of corn to ethanol was 2 cents, up from 1 cent yesterday.
--Editors: Margot Habiby, Richard Stubbe