US ethanol exports to Brazil supporting domestic prices

August 10, 2016 |

In Illinois, S&P Platts reports the front-month Chicago ethanol swap has recovered from a seven-month low of $1.3650/gal on Aug. 2 to $1.4250/gal on Monday in large part thanks to the arbitrage window between the US and Northeast Brazil. Supporting the arb window are lower freight prices that are currently running between 10 cents and 12 cents per gallon from US Gulf Coast to Northeast Brazil compared to average rates of 19 cents per gallon. Northeast anhydrous ethanol prices are currently around $2.40 per gallon compared to $2.09 per gallon in the Center-South, up 27% on the year.

Category: Fuels

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