Dry US wheat crop pushing up European prices to weigh on ethanol margins

In France, milling wheat prices hit a 20-month high that in turn have pushed down the theoretical crush spread margin for T2 ethanol to the lowest in six months at $97.2/mt. Dry weather in the US has the market expecting a smaller crop this fall which is helping to support European wheat prices despite expectations of a normal crop on that side of the Atlantic. On the other hand, ethanol prices have fallen off slightly.