SAN ANTONIO, Texas--US industrial ethanol prices are on an upward trend amid a sustained surge in the corn market, an ethanol producer said on Sunday.
US producers have announced increases for spot industrial ethanol effective 1 April, with initiatives ranging from 20 cents/gal to 45 cents/gal, the source said on the sidelines of the National Petrochemical & Refiners Association (NPRA) meeting.
The proposed increases, if implemented, were expected to impact only 10% of the US industrial market, as most buyers are under contract protection, the producer said.
But the initiatives on spot material offer a preview of the direction contract prices may take in the third quarter, the source said.
US corn futures bounced back in the week ended 28 March, after dropping sharply in the previous week amid a flight of risk-averse investment funds.
Prompt corn in Chicago ended at $5.60/bushel on Friday, up from $5.07/bushel a week earlier.
Market participants attributed the recovery to the weak US dollar, floods in the midwest and renewed cash inflow from investment funds.
Upward pressure from corn has also triggered price increase announcements on the beverage ethanol side, with US producers seeking 10 cent/proof gal increases between April and June.
US producers have announced increases for spot industrial ethanol effective 1 April, with initiatives ranging from 20 cents/gal to 45 cents/gal, the source said on the sidelines of the National Petrochemical & Refiners Association (NPRA) meeting.
The proposed increases, if implemented, were expected to impact only 10% of the US industrial market, as most buyers are under contract protection, the producer said.
But the initiatives on spot material offer a preview of the direction contract prices may take in the third quarter, the source said.
US corn futures bounced back in the week ended 28 March, after dropping sharply in the previous week amid a flight of risk-averse investment funds.
Prompt corn in Chicago ended at $5.60/bushel on Friday, up from $5.07/bushel a week earlier.
Market participants attributed the recovery to the weak US dollar, floods in the midwest and renewed cash inflow from investment funds.
Upward pressure from corn has also triggered price increase announcements on the beverage ethanol side, with US producers seeking 10 cent/proof gal increases between April and June.
