Rio De Janeiro (Platts)--6Jun2007

International demand for biofuels is having a positive impact on
Brazilian exports of agricultural commodities including cane alcohol and corn,
according to Brazil's National Agriculture Confederation CNA.

     The country's cane alcohol export revenue leapt to $490 million in the 
first four months of 2007, a "surprising" 108.1 percent rise over the same
2006 period, CNA said in a new report posted on its website.

     This increase was due both to a 65% increase in volumes exported and to
prices which were 26.1% higher during the period, it said. 

     "This data confirms forecasts that the sugar and alcohol sector could 
become one of Brazil's main agribusiness exporting sectors in coming years," 
the report said.

     Brazil's corn export revenue also leapt in the first four months to $260
million, 313.5% more than in the same 2006 period, according to CNA.

     The rise is attributed mainly to the USA broadening its use of corn for 
ethanol production, which has pushed international prices for corn up and
boosted demand for the Brazilian product. 

     This coincides with prospects for a record corn crop in Brazil this year.
The crop should grow 19.2 percent over 2006 levels to 50.7 million mt in 
2007, according to this month's forecast from Brazil's national supplies 
company Conab. 

     Cane alcohol and corn for biofuels usage are thus seen contributing to 
the overall rise in Brazil's agribusiness exports to 35.6 percent of Brazil's 
total exports of $46.45 billion in the first four months of 2007, according to
CNA. 

     This compared to 33.7 percent of a total of $36.29 billion in the same
2006 period, it said. 

     Brazil's O Globo newspaper Wednesday quoted Brazilian interior minister 
Dilma Rousseff as saying that Brazil's bid to become the world's no. 1 ethanol
producer will be boosted by total investments of $400 million in the
development of ethanol from paper pulp, of which $150 million will come from 
state oil and gas company Petrobras.