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Americas Asia Ethanol US

Discussions thin as market participants make their way Beijing ethanol conference

Physical discussion on Monday was inevitably thin in Asian ethanol, with most of the market en route to Beijing. China’s potential to grow as a major importer is already generating a buzz among conference attendees ahead of Tuesday and Wednesday’s Beijing conference sessions. Chinese policy is now actively trying to discourage domestic production of ethanol from grain based feedstocks, leaving end-users looking for alternative sources of supply for the more than 70% of China’s current consumption which is supplied from corn. Ambitious policy targets to drive consumption of cellulosic and non-grain based biofuel production are also under discussion in China, which could further lift the potential for imports from suitably-equipped international producers. US ethanol prices drifted upwards on Friday, reacting to a bullish WASDE report which showed downgraded US corn production. US exports were quiet last week, as overseas buyers remain fixated on the sliding Brazilian Real.

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