A jump of Eur37.50/cu m to Eur658/cu m in the price of T2 ethanol Friday was mirrored in the paper market which saw the front month swap move up Eur34/cu m to Eur625/cu m and the second-month swap move up Eur28/cu m to Eur595/cu m, both the highest since July 31, 2013.
The rebound followed a day of elevated bidding interest on concerns over resupply in Europe. Arbitrage opportunities were closed from the US and product was difficult to find from Brazil, according to sources.
The lack of import news was compounded by doubts over Abengoa's financial security despite the company telling Platts Thursday its ethanol plants were "operating as normal with no plans to stop".
Buying interest continued at the start of the week. By mid-day Monday, the December swap was heard bid at Eur625/cu m and the January swap was heard bid at Eur595/cu m.
