Asian fuel ethanol marker hits over two months high
Asian fuel ethanol prices rose to $645.67/cu m CIF Philippines on August 17, their highest since June 9, supported by stronger Chicago ethanol futures, firmer Brazilian prices and improving demand. However, buying remained cautious due to volatile freight costs, with October-November offers firm and future trading expected to remain price-sensitive.
The Asian fuel ethanol marker climbed to its highest level since June on Aug. 17, supported by firmer Chicago ethanol futures, improving demand fundamentals, and upward pressure from origin markets, sources told Platts, part of S&P Global Energy Aug. 17.
Platts assessed Asian fuel ethanol $645.67/cu m CIF Philippines on Aug 17, up $9.67/cu m day over day and $15/cu m week over week, marking the highest level since June 9, 2026, when the price was assessed at $648.33/cu m CIF Philippines.
An Asia-based trader reported that offers remain firm for October and November deliveries as September ethanol futures moved past $2/gal.
The recent price gain was largely driven by strengthening Chicago ethanol futures, which rose to a three-month high on Aug. 14 as corn futures rebounded.
Platts Chicago ethanol futures first month climbed to $1.9950/gal on Aug 14, levels seen since early May. Second-month and third-month futures also touched a multi-month high on Aug 14. Second month futures (Sep) touched $2.0150/gal mark, maintaining Aug/Sep structure in contango while the Sep/Oct structure remained in backwardation as third month (Oct) was assessed at $1.9950/gal.
Ethanol futures were supported by the CBOT corn futures and demand from US summer driving season, in addition to the volatility in crude prices.
Brazilian prices also recovered from recent lows over the same period, resulting in higher CIF offers into the Philippines and firmer market sentiment.
Platts data showed Brazil anhydrous ethanol was assessed at $531/cu m FOB Santos on Aug. 14, its highest level since June 2, when the assessment stood at $544/cu m.
Despite the improved fundamentals, buying interest remained measured amid uncertainty over volatile freight rates.
Looking ahead, sources indicated that trading activity is likely to be sporadic and largely price sensitive as buyers and sellers continue to monitor freight costs, futures movements, and origin prices.
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Source : S P Global
