Rising European ethanol prices push T2 paper swap to two-year high

In the Netherlands, T2 ethanol prices jumped on Friday, pushing the front-month paper swap to a two year high. Prices were pushed higher by a lack of supply availability for imports into Europe from Brazil while the US arbitrage window has closed. Concerns about Abengoa’s capacity to supply the European market remains in question despite assurances from the company that production hasn’t been affected by the company’s current financial troubles. The market expects prices to keep pushing higher until more supplies are sourced.