Lower sugar prices could see Brazil return to compete with US on ethanol

June 8, 2017 |

In Brazil, with global sugar prices falling that will see mills begin to shift towards more ethanol production, additional supplies are likely to compete directly with US-produced ethanol in the global market. US corn-based ethanol is currently seeing a lot of export demand, taking advantage of being the lone exporter of volumes above 1 billion gallons. As production continues to increase but demand remains steady due to policy restrictions such as the Reid Vapor Pressure rule, US ethanol must find other markets to supply. Brazilian competition will reduce the returns US exporters have been enjoying for the past several months.

Category: Fuels

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