Brazilian ethanol prices higher on rumors of increased gasoline taxes

In Brazil, the government may increase the CIDE or PIS/Cofins taxes on gasoline, a move which has supported ethanol prices in response. The former would take 90 days to be implemented but the latter could come into place immediately, however the level of possible taxation is not yet clear. PIS/Cofins could also be applied to ethanol, not just gasoline. More expensive gasoline makes ethanol more competitive at the pump so allows for room to move higher as well.