Ethanol futures rose to above $2.8 per gallon, the highest since the start of the year, tracking higher prices for energy as surging gasoline prices since the Russian invasion of Ukraine have lifted demand for biofuels. Simultaneous threats of food security and energy security pushed energy and agricultural commodities prices upwards, leading authorities to consider the difficult choice of whether to divert grains into biofuels production. Higher crude oil prices incentivized Brazilian farms to divert sugar cane to produce biofuels instead of sweeteners while Indonesian authorities expressed no interest in reducing the amount of palm oil in its ethanol to ensure energy security.
Historically, Ethanol reached an all time high of 4.33 in June of 2006. Ethanol - data, forecasts, historical chart - was last updated on June of 2022.
Ethanol is expected to trade at 2.92 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 3.25 in 12 months time.