Brazilian flex-fuel cars now have 94 percent market share for new sales; ethanol at 65 percent discount to gasoline cost

In Brazil, UNICA is reporting that heavy rains in South-Central Brazil caused a 23.8 percent fall in sugarcane production in the second half of August, and poor weather conditions are expected to continue to reduce harvesting activities in São Paulo, Mato Grosso do Sul and Parana states. However, 18 new sugarcane mills are expected to come online in September, and ethanol production exceeded the 500 million gallons mark in August for the second month in a row, reaching 529 million gallons.

Brazilian flex-fuel vehicle sales are now at 94 percent of total market sales and 35 percent of the total national fleet, and ethanol is now at a 65 percent discount to the cost of gasoline. Ethanol exports dropped to 473 million gallons for the harvest year to date, a drop of 25.66 percent.

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