Ethanol prices jump on hopes of exports to Brazil

In Illinois, hopes for exporting ethanol to Brazil during the inter-harvest season and drawing down on near-record stocks has helped to boost ethanol futures to December highs. Ethanol prices in Brazil are near 2011 highs with arbitrage opportunities opening up between the US and the country’s northeast region and just five cents away from entering the center-south region. With El Niño expecting to bring rain to Brazil at the start of its next crush in April, domestic ethanol production could be delayed and keep with arb window with the US open for longer.