European drought pushing biofuel feedstock prices higher

Across Europe, Platts reports that the ongoing drought continues to push up ethanol feedstock prices from corn to wheat as stocks tighten ahead of a potentially small harvest in many parts of the region. With the drought also impacting feed availability for livestock in many regions, demand for DDG has also increased, helping to offset the tighter margins seen for ethanol production. With China rejecting US soybeans due to the ongoing trade spat, soybeans are helping to offset the tightness from limited rapeseed supplies as well.