First European Ethanol Swap Traded Against Argus Price

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Nov 09, 2010, 10:33 ET

LONDON, Nov. 9, 2010 /PRNewswire/ -- The first Argus-based European ethanol swap was traded yesterday. The December swap for 1,000m3 was sold by AOT to Total at $695/m3 and brokered by Prebon.

International energy price reporting agency Argus produces daily price assessments for T1 and T2 fuel grade ethanol fob Rotterdam. Argus is a leading provider of international biofuels price assessments, and its biodiesel assessments for FAME 0 and RME are used extensively as benchmarks in the European physical and derivative markets. More recently, Argus introduced feedstock assessments to the Argus Biofuels report, including rapeseed and soybean oil, which have been used as price references in contracts.

Argus Media chairman and chief executive Adrian Binks said: "We are delighted that the industry has started to trade against our ethanol price assessments. Argus biodiesel assessments have been used in contracts since 2008 and a liquid swaps market has developed, which is priced against the physical trade and reported by Argus. We believe that the ethanol markets will develop in the same way, providing trading opportunities and risk management services to market participants. The biofuels community is one of the most dynamic and diverse we have encountered in Argus' 40 years of operation and we are pleased to be of service to it."

Argus methodologies are available from www.argusmedia.com/methodology. To find out more about how Argus calculates biofuels prices, click here.

For further information, to request a sample copy of Argus Biofuels or to enquire about historical data, contact Seana Lanigan in London on +44 20 7780 4200, or email [email protected]

About Argus Media

Argus is a leading provider of price assessments, business intelligence and market data on the global bioenergy, oil, natural gas, coal, electricity, emissions and transportation industries. It is headquartered in London and has offices in Houston, Washington, New York, Portland, Calgary, Johannesburg, Dubai, Singapore, Tokyo, Beijing, Sydney, Moscow, Astana, Kiev, Santiago and other key centres of the energy industry. Argus was founded in 1970 and is a privately held UK-registered company. Learn more at www.argusmedia.com.