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Americas Asia Energy Ethanol

Boost in Brazilian ethanol production sees exports rise

Korea’s ethanol market opened the week pricing flat to Friday in an illiquid session, with much of the market focused on the prospects for Brazilian exports into next month. Brazil is expecting a rise in hydrous ethanol production through August and September, due to improved weather conditions helping the sugarcane harvest. Exports of hydrous ethanol from Brazil have increased 4% so far this year, according to latest UNICA data, and traders expect Brazilian domestic demand to rise alongside stronger overseas buying. Import restrictions in China following a second chemical tank explosion in Shandong over the weekend may slow Chinese demand, however. And with the Brazilian Real still trading at its lowest levels against the US dollar in over 12 years, market participants are waiting for any signs that Brazil’s currency rout may have peaked in the wake of the past year’s 55% crash in value. daily image

 

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