European ethanol spot prices fall to four-year low

In the Netherlands, European spot prices for ethanol have fallen to a four-year low at $590.57/cu m FOB. Oversupply compared to local demand has weighed on prices during the whole of the year, except when Middle East export demand led to a short-term surge in March. Crush margins for corn and wheat remain negative for most producers, yet even the expectation of a bumper crop and lower feedstock prices aren’t expected to bring ethanol producers above production cost.