Ethanol

Ethanol futures were trading around $2.2 per gallon, down from their June peak of nearly $2.9, pressured by overall weakness in energy markets amid worries of a demand-sapping global recession. Adding to the bearish mood, in the December WASDE, USDA maintained its forecast for 2022-’23 corn use in ethanol at 5.275 billion bushels, down from an estimated 5.326 billion bushels in the previous period. Meanwhile, US companies took advantage of lower ethanol prices by blending record amounts of the fuel into the gasoline during the summer. According to EIA data, the ethanol blend rate from June through August reached 10.5%, the highest blend rate ever.

Historically, Ethanol reached an all time high of 4.33 in June of 2006. Ethanol - data, forecasts, historical chart - was last updated on January of 2023.

Ethanol is expected to trade at 2.28 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 2.45 in 12 months time.