European T2 ethanol prices jump to seven-month highs on shrinking stocks

In the Netherlands, T2 ethanol prices jumped to a seven-month high as stocks are drawn down and demand remains steady. The lack of supply in the Rotterdam area has supported crush margins for wheat to a theoretical six-month high and to a theoretical seven-month high for corn. UK feed wheat margins are near a six-month high as well despite stronger prices recently. The situation is tight enough that an arbitrage window with the US may open in the next couple of weeks as European producers are down for maintenance or suffering other technical challenges keeping them running low volumes.