15 August 2012 22:04 [Source: ICIS news]
HOUSTON (ICIS)--US industrial ethanol contracts settled up by an average of 38 cents/lb ($838/tonne, €679/tonne) for third-quarter contracts because of higher corn prices brought on by severe drought conditions in the US midwest, according to trade sources on Wednesday.
The price increase took 200 proof industrial ethanol prices up to $4.12–4.22/gal, and 190 proof contracts up to $3.92–4.02/gal, according to ICIS.
Market participants had originally sought a rollover from second-quarter prices of $3.74–3.84/gal for 200 proof and $3.54–3.64/gal for 190 proof in mid-June.
However, the recent highs in corn prices allowed some producers to implement price increases of 75 cents/lb, effective for 1 August.
Trade participants said some consumers who settled contracts before the price increases were issued were able to settled third-quarter contracts at a rollover.
Other contract participants saw increases of up to 75 cents/lb, in response to the corn market.
Suppliers have said if the strong corn prices continue, they would look into additional price increases of up to 30–40 cents/lb in September and October.
($1 = €0.81)
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