Brazilian ethanol demand could increase following ICMS tax proposed settlement

In Brazil, Reuters reports that ethanol demand could increase following a proposed settlement last week between the federal government and some states regarding the so-called ICMS state tax that was brokered by the Supreme Court. President Bolsonario earlier this year lowered the ICMS tax on gasoline despite it being a state-level rather than federal-level tax, which made ethanol less competitive and lost market share. States will now likely increase the tax in January to make up for lost revenue while ethanol will increase its competitiveness as a result.