European ethanol crushing margins tighten as feedstock prices increase

In the Netherlands, corn and wheat prices have been getting stronger over the past few sessions which is having a negative impact on ethanol producers by squeezing margins, due to the fact the traditional summer driving season is slow in arriving thanks to a colder spring, keeping demand and supply in balance. The front-month Paris corn contract is trading near its 200-day high while wheat prices are also trending higher. The corn crush spread fell by about EUR8 while wheat is down by around EUR2.