Brazilian Ethanol Exports to U.S. Likely to Grow – Datagro
by Reese Ewing (Reuters Africa) Exports of Brazilian ethanol to the U.S. market are likely to grow, while still allowing Brazil to increase its blend of the biofuel in gasoline in early 2013, local sugar and ethanol analyst Datagro said.
Brazilian exports of ethanol surged in July to 410 million liters, most of it going to the United States, according to Brazil’s Trade Ministry. In previous months, exports were between 140 million and 64 million liters a month.
…Brazil has been trying to reverse falling yields from its cane crop. The lower yields have limited the output of ethanol fuel. This has left the fuels market short and driven up prices.
…”Brazil will export more ethanol to the United States due to the drought there, but there will still be room to raise the ethanol blend (here) in April 2013,” Nastari said.
Brazil reduced its ethanol blend in gasoline to 20 percent from 25 percent last October after drought and falling yields reduced the supply of ethanol. Currently, ethanol prices are lower in Brazil than in the United States, and mills are losing money from their ethanol operations.
Raising the blend back to the maximum of 25 percent in gasoline would relieve Petrobras of roughly 40 percent of its gasoline import needs and might improve mills’ earnings from ethanol production. READ MORE
