A lot of people think ethanol is only made from corn and here in the United States that seems to be the case. However, there are other commodities than can be used in the production of ethanol and one of those is sugar cane. A story in today’s Planet Ark out of Sao Paulo, Brazil talks about how ethanol itself is becoming a world traded commodity spurred on by the introduction of flex-fueled vehicles. According to the story, “Brazilian sugar cane mills say they are getting better deals to sell ethanol fuel abroad by extending what used to be only spot market sales into longer-term contracts with flexible pricing, especially with the rise in world oil prices.”

The story says that now people are wondering how much sugar cane will be diverted from sugar production to the production of fuel (ethanol).