Ethanol Trading

Ethanol is created from distilled ethyl alcohol, and it can be made from various crops, such as corn and sugarcane. Ethanol is blended with gasoline, and is generally offered in two percentages, 10% ethanol and 85% ethanol by volume. US State and Federal legislation require a percentage of ethanol be blended into the gasoline pool, but levels vary by region.

The ethanol market is the largest and fastest growing biofuel market in the United States Government mandate dictates that ethanol blending into gasoline will reach 5% of the gasoline pool by 2010, however analysis shows that ethanol could make up a much more significant part of the gasoline pool by this date.

Ethanol market analysis from 2006 predicts it will make up 7% of the gasoline pool by 2010, and ethanol production is expected to drastically increase. By 2012, ethanol production is on track to exceed over 7.5 billion gallons annually, from 4.5 billion gallons in 2005. Ethanol offers a low emission alternative to gasoline that can be run in cars.

Ethanol trading occurs usually in five different locations:

• East Coast
• New York Harbour
• Gulf Coast
• West Coast
• Chicago (Argo)

Methods of buying ethanol include:

• Barges
• In Tank volume transfer (ITT)
• Rail Cars

Value for delivery locations is derived from the Chicago Board of Trade (CBOT) ethanol contract.

Contacts  
Ethanol Trading Enquiries: Adam Smyth +1 201 963 4947