Brazil ethanol exports down 20 percent in 2007; US ethanol glut cited as cause

In Brazil, Sao Martinho said Monday that it would export 23 million gallons of ethanol in 2008, the same as 2007.

Overall, Brazilian ethanol exports for 2007 will be 800 million gallons, down 20 percent from 2006 owing to oversupply in the US market.

Last month, consultant Jonathan Kingsman estimated a world surplus of ethanol at 658 million gallons, compared to a small shortage in 2006. He projected that, with the rise in ethanol feedstock prices, Brazil would find excellent export potential in Europe in 2008. “Demand is disappointing for ethanol due to logistic problems, resistance, political issues,” he said.

In addition to an ethanol surplus, there is a worldwide sugar surplus that has many governments looking to ethanol production to solve.

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