Brazil's anhydrous ethanol prices are higher this month on increased demand as marketers replenish depleted inventories after the country's Carnival festival held from Feb. 9 through Feb. 12.
Although edging higher today, U.S. ethanol spot and futures prices last week fell to a one-month low, with the pincer-like price movement closing the arbitrage window for Brazilian producers. Brazil's ethanol supply has been exported to the U.S. steadily since the fourth quarter 2012, although no exports were sent to U.S. ports during the final week of January.
Energy Information Administration data shows U.S. ethanol imports declining, averaging 11,000 bpd during the week-ended Feb. 8 which compares with 67,000 bpd for the week-ended Jan. 18 and 87,000 bpd during the final week of 2012.
George Orwel can be reached at email@example.com
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