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Asia Ethanol US

Traders hesitant as Korea B-grade ends on a weekly gain

Korean B-grade ethanol indications continued to drift higher, as bids moved upwards towards 490 USD/m3, leaving assessed value siting at 495 USD/m3. Markets continue to keep an eye on the Brazilian Real.  The Real appears to be flattening out after its precipitous decline against the US dollar but traders remain hesitant in the wake this week’s Chinese currency gyrations. Ethanol demand in Japan is low, as buyers wait for prices to fall, before starting to fill their 2016 requirements. US ethanol prices moved back upwards yesterday, after the shock of Wednesday’s WASDE report faded. As the end of the US driving season rapidly approaches, US exports of fuel ethanol may become more prominent in the Asian market, with freight around 60 USD/m3, considerably lower than the Brazil-Korea freight of 70 USD/m3.

 

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