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| 11/11/2009 |
| Rain in the u.s. opens the way for brazilian ethanol |
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| Source:
O Estado de S. Paulo |
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A drop in U.S. corn production, caused by excessive rains in the producing regions of the midwestern United States, could open the opportunity for further exports of Brazilian anhydrous ethanol in the next harvest, according to the technical director of the Sucar Cane Industry Union (Unica), Antonio Padua Rodrigues.
According to him, Brazilian exports to the U.S. will become possible only if there is a window of opportunity created by the high price of corn - and corn-based ethanol - while the Brazilian cane ethanol remains priced lower. Padua made clear, however, that at present there is no exporting possibility of the Brazilian ethanol, given the limited supply of the product, leaving domestic prices quite high. "With the current conditions, it is impossible to export ethanol," he said.
Other businessman and adviser of Unica, Maurilio Biagi Filho, also estimates that the current price of ethanol - from $ 1.12 a gallon in the plants in Sao Paulo - it is impossible to export the fuel. "To export, first we must have the fuel available. If you have, you still have to see to whom it will be exported and in what conditions'', said.
The president of St. Martin, Fabio Venturelli, believes the industry will look first at the domestic market. ''The fact that an export oportunity will be created does not mean that we actually will sell the ethanol abroad" he said.
Anyway, in the long run, according to trading analyst at French Sucres et Denrees, Karim Salamon, the United States must import large volumes of ethanol from Brazil to meet the targets for the use of advanced biofuels required by the Renewable Fuels Standard U.S. She said the U.S. will depend significantly on the Brazilian ethanol to meet the requirements established of 757 million liters in 2010, reaching 15.1 billion liters in 2022. That's because ethanol made from corn, the U.S. standard, does not meet the reduction target of at least 40% reduction in gas emissions that cause global warming. |
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