Germany to consider raising ethanol mandate from 5% to 10% in 2011

In Germany, the federal cabinet will vote on Wednesday to lift the ethanol blend for 2011 to 10% from 5% currently. Previous attempts to raise the ethanol blend wall had failed because of concerns about older cars but the German government says about 90% of the German car fleet should have no problem with higher blends. Both grain and sugar prices have been on the rise so the additional demand would push ethanol prices higher next year or stimulate demand for imports.

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