Ethanol production in the U.S. fell 1 percent to 899,000 barrels a day last week, according to an Energy Department report.
Output slid from a nine-week high. Stockpiles sank 3.2 percent to 17.6 million barrels, a second consecutive weekly drop, leaving supply at the lowest level since Jan. 7, the report showed. That’s enough supply for 20.2 days.
Production of conventional gasoline blended with ethanol was little changed at a record 5.31 million barrels a day. Refiners receive a 45-cent tax credit for every gallon of ethanol blended into the motor fuel.
Denatured ethanol for September delivery rose 2.3 cents, or 0.8 percent, to $2.82 a gallon at 10:37 a.m. New York time on the Chicago Board of Trade. Futures have gained 19 percent this year.
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