European T2 ethanol prices seeing strong backwardation

In the Netherlands, Platts reports European T2 ethanol prices are experiencing strong and increasing backwardation in part due to the closed import arbitrage that has existed for much of 2023, with prompt April/May paper trade having doubled to Eur20/cu m from one day to the next last week. Backwardation is seen through May-June trades but arbitrage is expected to open up from June, but the market is expected to experience continued tightness until things begin to open up then.