“Demand for gas went off a cliff in early September, and ethanol blending fell off with it,” said Geoff Cooper, senior vice president at the Renewable Fuels Association, a trade group for ethanol makers.
Ethanol futures plunged 28% last month, as falling domestic demand left U.S. producers with the largest inventories in more than a year.
September saw a near free-fall in ethanol futures as prices declined 62 cents per gallon and additional price pressure is likely still to come. Front month October ethanol futures fell from $2.20 per gallon at the end of August (before Labor Day weekend) to $1.58 in late September.
