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Asia Ethanol US

Asian importers eyeing Brazilian ethanol on continuing Real weakness

Value indications in the spot CFR Ulsan market remained under pressure in otherwise thin discussion. The market’s focus remains on the weakening dollar-real relationship which has seen the real lose 1.5% of its buying power relative to the dollar since Tuesday. Over the past 6 months the real has fallen more than 20% against the US dollar. September B-grade spec offers FOB Santos remain around 440USD/m3. US Department of Energy data yesterday showed US fuel ethanol production continue to stumble, with US producers still suffering relatively poor margins. US ethanol stocks however drew down more than 2% as blenders are having to keep pace with historically strong summer gasoline demand. An unexpected build in US gasoline stocks however provides a timely reminder that the US summer driving season is rapidly drawing to a close.

 

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