HOUSTON (ICIS)--US industrial ethanol contracts were assessed on Wednesday at a rollover from the second quarter to the third quarter.
Despite the dip in corn futures prices, sources said corn basis prices, which are the prices producers pay for last year’s harvest, have averaged about $1.50/bushel (€1.13/bushel) higher than corn futures.
Corn futures settled at $5.04/bushel on Wednesday. Earlier in the year, they were around $7/bushel. Supplies were short last year as a result of the massive draught that plagued the US Midwest.
However, several sources said they expect to see an ethanol price decrease in the fourth quarter and beyond once this year’s crop is harvested.
Analysts have said this year’s corn crop is going to be a bumper one, with record acreage planted.
Sources' demand for industrial ethanol has been strong in the summer months, as beverage and vinegar producers have been running plants at high rates.
Industrial ethanol contract prices were assessed at $4.12-4.22/gal for 200 proof and $3.92-4.02/gal for 190 proof.
($1 = €0.75)