Brazil Ethanol Use Up; Exports Down
NEW YORK (DTN) -- Brazil's Union of Sugarcane Industry Association released a report Tuesday saying processing of sugarcane slowed during the year-ended March 31, with 571.3 tons crushed into ethanol and sugar, down 4.3% from the previous year. The new crop season for 2015-16 began April 1.
The report by the ethanol group, known commonly by its Portuguese acronym UNICA, showed ethanol sales at 2.3 billion liters during the month of March, up 21.8% versus March 2014. The increase was attributed to higher demand for hydrous ethanol, which is blended with gasoline and is used in flex fuel vehicles.
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The increase in demand for hydrous ethanol coincided with falling gasoline prices, which made gasoline an economically more attractive fuel to consumers compared with ethanol. During the month of March, sale of anhydrous or pure ethanol, a gauge for demand, fell 4.3% to 866 million liters.
The report said as Brazil's domestic demand rose, ethanol exports fell 39% during the year-ended March 31 to 1.5 billion liters.
The south-central region is the country's sugar-belt, accounting for 90% of Brazil's ethanol output. Sugarcane is the feedstock for Brazil's ethanol production.
A separate report by Cepea, a research center linked to Brazil's Sao Paulo University, shows hydrous ethanol prices rose last week by 4 cents to $1.54 gallon while anhydrous ethanol prices advanced 3 cents to $1.64 gallon.
(BM/AG)
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