European T2 ethanol margins at 18-month lows due to low demand and higher feedstock prices

In the Netherlands, Platts reports that T2 ethanol margins are at 18-month lows of Eur4.85/cu m and Eur3.50/cu m against EU milling wheat and corn due to oversupplies in the market with ethanol prices quoted at Eur449/cu m FOB Rotterdam on Tuesday. Demand typically eases in Q4 and Q1 but continued imports and more expected through Q2 have built up stocks that aren’t like to ease in the near term. Recently, corn and wheat futures have rallied, squeezing margins even further.