Estimated crush margins for European ethanol producers increased at the end of last week as feedstocks came under pressure and buying interest led to higher ethanol prices.
Platts T2 ethanol assessment Friday rose Eur12/cu m from Thursday to Eur468/cu m, the highest level in 47 days, while feedstocks were mostly softer or saw only minor moves higher.
The milling wheat crush spread, based on Platts 1630 UK assessments, increased to Eur56.25/cu m from Eur40.20/cu m, the highest level in 45 days, while the corn crush spread rose to Eur43.43/cu m from Eur33.45/cu m. The feedwheat crush spread, based on the Euronext settle, rose to Eur114.64/cu m from Eur102.83/cu m, the fifth consecutive day of triple figures.
Good weather combined with a new crop harvest in the EU and US are easing pricing concerns for grains traders and pulling prices down.
Meanwhile, despite a continued contango in the European ethanol market, traders were anticipating an uptick in buying interest moving further into the second quarter as the summer driving season comes into force.
