EU corn ethanol processing profit drops to the lowest in eight years

Foreign media news on August 9: Last week the EU corn ethanol processing profit hit the lowest in eight years, due to bad weather conditions in major exporting countries, causing global corn prices to soar
.

 

　　On August 3, the EU suffered a loss of 153 euros for every cubic meter of ethanol processed, which was at least the worst level since July 2013.
The reason was that the cost of corn raw materials increased due to the reduction in corn production in Brazil
.
Brazil is the world's second largest corn exporter and one of the EU's largest corn suppliers
.
Although Brazil is harvesting corn, the price of domestic corn in Brazil has soared because the forecast of corn production in Brazil may be further reduced
.
Brazil’s agriculture this year was troubled by extreme weather.
First, the planting season suffered a drought that delayed the planting schedule.
Since June, there have been frosts repeatedly, resulting in a decline in the yield of the second season corn and poor quality
.
In its August 2 report, consulting firm AgRural lowered its forecast of corn production in Brazil from 85.
3 million tons to 82.
2 million tons, which is far lower than last year's output of 102.
6 million tons
.

 

　　Brazil's reduced corn production has also led to a decline in exports
.
Official Brazilian data show that Brazilian corn exports in July fell by 50% year-on-year
.
The Euronext corn futures price has risen by more than 30% since July 1, and the trading price on August 3 was as high as 315 euros/ton
.
Dry weather in the corn growing belt of the Midwestern United States also boosted corn prices in Europe
.
The data released on August 2 showed that the excellent and good rate of corn was 62%, which was lower than 64% a week ago and 72% in the same period last year
.
This makes the market more worried
.

 

　　Although the improvement of EU travel data shows that ethanol demand is good, the price of T2 ethanol has fallen by 5% since July 1.
As of August 3, the price of T2 ethanol was 618 euros per cubic meter, FOB Rotterdam
.
Sources said that the price of T2 ethanol dropped to around 600 Euros/m3, coupled with the current high prices of grains and natural gas, did indeed cause damage to production profits
.