Ethanol futures traded around $2.3 per gallon, close to an over 6-year high of $2.44 hit in early-May, as traders weighed production cuts and resistance from the buyers-side to chase lofty offers. On the supply side, American ethanol producers slowed production outputs in a move to protect their margins, as corn futures reached a near 8-year high, driven by tight global supplies and strong demand in China. Looking ahead, Biden’s disinterest in the biofuel in favor of high-tech alternatives of green transportation, such as electric cars, could risk the growth potential of the ethanol market.
Historically, Ethanol reached an all time high of 4.33 in June of 2006. Ethanol - data, forecasts, historical chart - was last updated on May of 2021.
Ethanol is expected to trade at 2.19 USD/GAL by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.80 in 12 months time.