Despite a Eur4.75/cu m jump on the T2 ethanol price to Eur574/cu m Tuesday, the cash premium over the front-month swap narrowed Eur6.25/cu m to Eur48/cu m, the lowest level since September 30.
The November swap has increased by 5.2% since October 1. By Tuesday it was assessed by Platts at Eur526/cu m, up from Eur515/cu m in a day that saw significant moves up across all six forward months on the paper curve.
The increase on the swaps was attributed by one source as a delayed reaction to the wider commodity market. "Two weeks ago everything was flying, grains were flying, energy was flying, but ethanol didn't really respond," the source said. "But now we're seeing a response."
Although the physical price did not see as great a day-on-day increase as the paper market, T2 ethanol moved to its highest level in 21 days Tuesday.
Maintenance season was said to be continuing for a number of plants and there was rumored to be one producer experiencing difficulties with deliveries, which could have been affecting pricing levels, a source said.
