European T2 ethanol falls to 18-month low on high stocks and seasonal imports

In the Netherlands, ICIS reports that FOB Rotterdam EU T2 ethanol prices have fallen to $522 per cubic meter, the lowest since September 2016, pushing crush margins into negative territory for European producers. With the European Union capping conventional ethanol at 7% through 2020 and likely further through 2030, traders see the European market in long term crisis that weighs further on prices. High storage and production volumes will likely pressure prices well into Q3. Platts reports that imports from Central America are not uncommon during this period, while stocks were boosted from a result of a bumper sugarbeet campaign.