T2 ethanol premium jumps to near seven-year high over Eurobob

In the Netherlands, the T2 ethanol premium jumped to nearly a seven-year high over Eurobob gasoline prices on Friday at $358.99/cu m as the market continues to experience tight supplies. Low river levels on both the Danube and the Rhine have made barging in ethanol supplies extremely difficult, meshed with mothballed production in the UK, explosion at a factory in the Czech Republic two months ago and other events that impact spot prices such as a one-day strike in France.

However, relief may be in sight for the European ethanol market as the tight supply situation looks to ease up some in the medium-term, thanks to incoming imports and the end of the driving season.