Brazil sugarcane boom allows more US ethanol exports: sources

Rio de Janeiro (Platts)--7Jun2006

Brazil's bumper sugarcane crop this year, along with a cut in exports to
India, will help free up more ethanol shipments to the US, according to
Brazilian industry and trading sources consulted by Platts on Wednesday.

But soaring domestic demand will probably mean that Brazil's global
exports of ethanol will fall slightly this year, even as production of ethanol
in Brazil rises.

Brazil should produce 17.05 billion liters of ethanol in the 2006-2007
harvest season -- which runs from April 2006 through March 2007 -- up from
15.94 billion liters in the previous season, an official at the country's
largest sugarcane producers' group, Sao Paulo-based Unica, told Platts.

A boost in domestic demand for ethanol in Brazil may mean that Brazil's
ethanol available for export will fall slightly from the 2005-2006 season,
when Brazilian exports hit 2.4 billion liters, sources told Platts.

In the 2006/2007 season Brazil's ethanol exports may fall to 2.3 billion
liters, the sources estimated.

However, exports of ethanol from Brazil to the US are likely to nearly
double from 2005/2006 levels of 420 million liters, the sources estimated, to
at least 800 million liters, despite the $0.54/gal import tariff the US
imposes on Brazilian ethanol.

Brazilian ethanol exports to the US will rise as Brazil is likely to cut
all ethanol exports to India this season, after shipping 400 million liters of
ethanol to India over the 2005/2006 season, sources said. India is expected
this year to meet its own domestic ethanol demand.

The latest export estimates are based on a Brazilian sugarcane harvest of
428 million tonnes, up about 10% from 2005/2006.

For similar news, take a trial to Platts Petrochemical Report at
http://petrochemicalreport.platts.com.


 

Copyright © 2005 - Platts

Please visit:  www.platts.com

Their coverage of energy matters is extensive!!.