European-US ethanol arbitrage window closed by could re-open

In the Netherlands, the euro fell against the dollar, which was likely to have closed the arbitrage window for ethanol trade between Europe and the US on Tuesday. A move in the price of ethanol or the exchange rate could open it back up, however, even if the opportunity is a narrow one until market fundamentals change. Ethanol supplies in Europe remain tight with few or no cargos set to arrive in the near term that will likely work to push prices higher.