A return of keen buying interest saw the Platts T2 ethanol assessment push through the Eur500/cu m ceiling to Eur504/cu m, up Eur19/cu m, for the first time since February 17 on the first assessment day of the new month Tuesday.
Sentiment was "firmer" during the day according to one source, with the paper market also seeing increases. The front-month swap moved up Eur14/cu m on the day to Eur513/cu m and the second-month swap increased Eur7/cu m to Eur511/cu m.
The front-month paper's premium over the cash contract narrowed to Eur9/cu m from Eur14/cu m, the lowest level in two weeks. The cash contract has been at a discount to the front-month paper swap since February 17 during a period of lower demand and full tanks.
A number of sources were seeing increased demand for May, more notably in the second half of the month, rather than on prompt dates but with more buying interest expected in June.
Around 7,000 cu m of imports from Central America are due to arrive in Europe in May but with tanks still holding a lot of volume, some sources were unsure where the imports could go.
