Growth in Brazil ethanol exports to slow
OREANDA-NEWS. October 06, 2015. Steady growth in Brazil ethanol exports this year is poised for a slowdown as domestic prices rise in line with gasoline.
Brazil exported 172.7mn liters (36,208 b/d) of ethanol in September, up by 45pc from the same month last year, according to preliminary trade ministry data.
In the first nine months of the year, Brazil exported 1.12bn l, up by 5pc from the same nine-month period of 2014.
Although Brazilian producers have been favoring the domestic market over exports, the recent weakening of the Brazilian real has made ethanol more competitive abroad.
But a 6pc wholesale gasoline price hike imposed by Brazilian state-controlled oil company Petrobras on 29 September immediately pushed up hydrous ethanol prices at the mill gate in Sao Paulo state by 7pc, according to local agricultural research center Cepea.
The higher domestic price could partially offset the appeal of the export market.
Over the past 12 months, the real lost nearly 40pc of its value relative to the US dollar.