European wheat producers see record-breaking crush margins but they will be short-lived

In the Netherlands, wheat ethanol producers are benefiting from an all-time high for wheat crushing margins with more than EUR150 per metric ton of T2 ethanol FOB Rotterdam. The physical market for prompt deliveries remains tight, providing support to margins, but further out those margins are expected to shrivel up as production ramps back up and more supplies hit the market. Ethanol prices are currently at their highest since October 2013 but December ethanol futures prices indicate a crush margin of just over EUR17 per ton.