Brazilian ethanol stocks up 5% on year due to high gas prices

In Brazil, Bloomberg reports that drivers are choosing cheaper gasoline at the pump, leaving significant ethanol stocks that are weighing on prices. Raizen’s ethanol stocks doubled in Q2 vs. Q1, pushing the company to shift its ethanol production to sugar which is fetching much higher prices thanks to a global deficit. UNICA says E100 sales dropped 9% in July while estimates are that national stocks are 5% higher on the year. Petrobras raised fuel prices on Tuesday which should help to return some of the ethanol demand.