Q1 US industrial ethanol contracts drop on volatile corn prices

18 January 2012 22:18  [Source: ICIS news]

HOUSTON (ICIS)--Producers and consumers confirmed on Wednesday first-quarter industrial ethanol contract settlements at declines of 7.50 cents/gal on average, on the back of weaker corn prices early in the fourth-quarter.

Sources said some contract participants saw a 5-cent/gal drop early in negotiations, while others saw a 10-cent/gal decline later on.

The declines were also in line with market expectations and discussions a week earlier.

The decline took 200 proof ethanol contracts to $3.743.84/gal, and 190 proof ethanol contracts to $3.543.64/gal.

This was down from 200 proof ethanol prices of $3.813.91/gal, and 190 proof ethanol prices of $3.613.71/gal from the fourth-quarter of 2011.

Industrial ethanol producers did not come out with any price letters for first quarter contracts.

Market participants also said it was too early to discuss second-quarter ethanol contracts.

For more on ethanol visit ICIS chemical intelligence

By: Brian Balboa
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