Korea B-grade ethanol bid indications remained flat today at 490 USD/m3, with offers continuing to hold off. Indicative value remained well supported, sitting at 500 USD/m3 as prices for Brazilian FOB Santos B-grade ethanol drifted upwards towards 420USD/m3 for September shipment.
US ethanol prices also moved higher on Friday, accompanied by a surge in California LCFS prices of 70% MoM in July. A recent USDA report indicated that Brazilian ethanol production for 2016 is expected to increase 5%, however this is expected to contribute mainly to domestic consumption, considering the increase in the ethanol blend wall earlier this year. Brazilian ethanol exports are therefore expected to remain around the same level as 2015.