Europe’s crush spreads running negative despite lower wheat prices

In Europe, crush spreads are far below where they were in 2013, even though wheat prices are around 15% lower than last year. The challenge has been the low ethanol prices that have dominated the region in 2014, some EUR135.18 per cubic meter lower.  That has led to about a EUR50 difference in crush spreads between last year and this, with the average in 2013 at EUR38.58 per cubic meter while currently they’re running at negative EUR20.20.