Brazilian Ethanol Floods U.S.
July 16, 2008 Brazil will likely export at least 3 billion liters — or about 793 million gallons — of ethanol to the U.S. this year as a result of soaring ethanol prices in the U.S. and cheap ethanol prices by comparison in Brazil, according to a Dow Jones report.
The volume could be even higher if not for a $0.54 per gallon import duty imposed on Brazilian ethanol by Washington, commodities risk analyst firm FC Stone said in a 29-page monthly sugar and ethanol report from Sao Paulo.
Brazilian ethanol is made from sugarcane as opposed to corn ethanol in the U.S. Industry estimates are that Brazilian flex-fuel car owners will consume 18 billion liters of ethanol this season, allowing for an extra 7 billion for external markets given current ethanol production estimates for crop year 2008-09.
Brazil exported a daily average of 20.2 million liters of ethanol to world markets in June, up from 19.6 million in May. Most of it was going to the U.S., according to government figures published July 1 by the Foreign Trade Ministry.
Subscribe Today For
