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Ethanol
The last quarter has been characterized by price volatility both with respect to oil prices and ethanol prices. Oil prices soared to over US$ 140/bbl in July but fell sharply in August and in mid September Brent Crude near futures are trading at just under US$ 100/bbl. However movements in oil prices have become largely disconnected from price developments in the major ethanol markets. Moreover ethanol prices in the US and Brazil are exhibiting very different price dynamics.
In the US falling gasoline and corn prices have contributed to the bearish trend in the ethanol market and prices have continued to decline. Despite falling corn and natural gas prices margins remain tight.
Ethanol