European crush margins turn negative despite prices at six-month highs

In Brazil, Platts reports that European crush margins have again slipped into the red as corn prices in Europe and internationally take a bullish turn as Brazilian and US supplies tighten and Ukrainian prices also strengthen. The negative margins are despite the fact that with European countries easing COVID-related travel restrictions in the near future, giving hope for a near-normal summer driving season, T2 physical ethanol prices have soared to six-month highs. Typically ethanol and grains markets aren’t linked but traders feel that may be changing and now are linked closely, even if just for the time being.