Chicago ethanol swaps slip into largest backwardation in six months

In Illinois, Platts reports that with the slow ramp up of mothballed ethanol production compared to increasing demand, the backwardation between front and second-month Chicago ethanol swaps has reached a six-month high at 4.75 cents. Similarly, crush margins became positive for the first time in three months, further indicating tight supplies amid increased demand. Estimates are that at least 60 ethanol plants remain mothballed although many are slowly coming back online. Even more are running at reduced capacity.