European T2 ethanol prices seen coming out of contango at last

In the Netherlands, the contango in the T2 ethanol market is finally working its way through after having been present in the paper market since mid-February. That situation encouraged producers to buy up fuel and store it for higher prices later but traders now see the tide beginning to turn thanks to storage facilities in Rotterdam being at near capacity. Storage capacity will likely open up in May, which may bend the market back into contango but it’s too early to tell if that will pan out.