US industrial ethanol contracts edge higher for May

12 May 2006 16:01  [Source: ICIS news]

HOUSTON (ICIS news)--US industrial ethanol contracts edged up between April and May, sources confirmed on Friday.

A modest 5 cents/gal increase was achieved in 200 proof ethanol, with May business confirmed doable in a $3.10-3.30 range, according to assessments by global chemical market intelligence service ICIS pricing.

Less was implemented in the 190 proof tier, which includes beverage, as ICIS pricing assessed a 2 cents/gal gain in a $2.87-3.07 spread.

Price increases up to 20 cents/gal were sought by some suppliers in April, but a scattered following deteriorated the upward push. Increases of 10 cents/gal, 15 cents/gal were issued by various fermentation (corn-based) producers on 190 and 200 proof alcohols. Synthetic suppliers sought up to 20 cts/gal on 200 proof industrial material.

Archer Daniels Midland (ADM), the largest US ethanol producer, did not issue increases in April. ADM had strongly increased its distributor-based price ranges in December. Sources said the absence of the largest fermentation player and hints that one of the synthetic suppliers rescinded its initiatives in some areas, tended to undermine the effort.

Fermentation producers include ADM, MGP Ingredients, and GPC Grains. Synthetic producers are Lyondell and Sasol.

By: Judith Taylor
+1 713 525 2653

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