In Brazil, Platts reports that about 40,000 cubic meters of ethanol were booked to the US from the port of Santos for shipment in July and August with expectation of prices around $480/cu m FOB. A stronger dollar and stronger ethanol prices in the US made the arbitrage deal viable. A recent rally of D5 RINs over D6 RINs mean additional potential room for Brazilian ethanol in the “other advanced biofuels” category despite much of it going to biodiesel production.
Category: Fuels