Beet-based ethanol production seen returning after quotas end in September

In Europe, the ending of sugarbeet production quotas the end of September has lead the market to expect a return of ethanol production from beet as a way to absorb production excesses. Backwardation into the ethanol market from October partly reflects these additional beet-based supplies, combined with the Salamanca ethanol plant formerly owned by Abengoa ramping back up. As in Brazil, sugar and ethanol parity is expected to become a key market feature in Europe moving forward.