US ethanol prices slide to 3-month low

July 28 | Updated: Jul 31 2006, 06:08am hrs
Ethanol prices in the US fell to three-month lows, extending a slide from record highs as higher production and imports eased shortages stemming from increased use of the grain-based fuel in gasoline.

US distillers are expanding ethanol plants or building new ones, and imports have increasingly flowed in from Brazil, said Jeff DeReamer, president of EthanolMarket.com LLC, a Lexington, Kentucky-based consultant. Thats helped meet a surge in demand after refiners phased in ethanol as the primary additive in US gasoline.

The US East and West Coasts are fairly well-supplied with ethanol, DeReamer said. Additionally, its near the end of the summer driving season, meaning gasoline demand likely will decline starting in September, he said. The US average ethanol price was $2.5688 a gallon, based on data from distributors in Des Moines, Iowa, and almost 30 other midwest locations.

Bloomberg