Brazilian hydrous ethanol demand falls off in the face of high prices

In Brazil, hydrous ethanol demand has finally slipped thanks to drivers refusing to pay the ever-higher prices. February sales fell nearly 7% on the year ahead of the start of the next crush in mid-March, a few weeks earlier than usual. Steady demand is expected to keep ethanol at home rather than exported abroad, with nothing seen headed for Europe. Instead, the few exports seen are likely to head only to California and Asia. A lack of storage capacity at ports is also reducing the country’s capacity to export.