18 April 2013 18:37 [Source: ICIS news]
HOUSTON (ICIS)--US ethanol contract prices for the second quarter have rolled over from the first quarter, sources said on Thursday.
Prices for 200 proof and 190 proof ethanol remained at $4.12-4.22/gal (€3.17-3.25) and $3.92-4.02/gal, respectively. This is the third straight quarterly rollover.
Some buyers were hoping for a decrease in prices for the second quarter because of weak corn futures.
However, a source said it is going to take awhile for the higher-priced corn inventories to turnover.
“Also, the physical corn prices have not come down as much as the futures market as basis has strengthened,” a source said. “The farmers do not care what is happening on the futures market and have become accustomed to receiving high prices for corn.”
Stronger ethyl alcohol demand has also provided upward support.
Meanwhile, a source said if corn prices stay at these depressed levels, then there may be some price decreases in store later this year.
Corn futures for the prompt May contract settled at $6.60/bushel on 17 April but were drifting lower on Thursday.
($1 = €0.77)
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