The Brazilian Real fell further against the dollar to 0.2602 today, allowing value for Korean ethanol to drift down to 473USD/m3. The market remained quiet once again, following a national holiday in China on Friday, and with markets closed in the US and Brazil on Monday.
US ethanol prices pushed upwards on Friday, with high buying demand ahead of the long weekend. Market participants on the US west coast are awaiting decisions regarding the extension of the California LCFS carbon cap and trade scheme, which will take place on September 24th. As the program is based on a detailed carbon intensity calculation methodology, its reintroduction should see demand for low carbon pathway biofuels such as sugar-based ethanol increase in the US, further opening the potential northwards arbitrage for Brazilian ethanol exports.