Brazil will struggle to meet ethanol demand, as output struggles: report

In Washington, Rabobank recently released a report on Agribusiness in Brazil and United States markets. According to the report, despite developments in Brazil’s access to the US ethanol market, the Brazilian cane industry will struggle to satisfy both its domestic and world demand because of uncertain outlook for output growth.

Said David Nelson, Global Strategist for Grains and Oilseeds at Rabobank, “The outlook for exports is heavily dependent upon what happens with the sugar crop in Brazil, the U.S.’s biggest export competitor. Rabobank’s outlook for higher U.S. ethanol production is also predicated on regulatory approval for E15. If E15 is adopted by just 10 Midwest states, that will alleviate current blend wall restrictions.”