S&P Global Platts Launches New Weekly Ethanol Assessment

Cindy Zimmerman

S&P Global Platts has launched a new North-Northeast Brazil anhydrous ethanol assessment which reflects demand for greater transparency and a clearly defined methodology to help market participants understand the drivers of pricing.

“The North-Northeast of Brazil is a region that is net short ethanol and therefore needs to import from the Center-South region of the country as well as from the United States,” said Ian Dudden, Global Content Director, Agriculture, S&P Global Platts.

“So far this year our ethanol analysis shows falling production in the NNE region, with imports having more than doubled to over a third of consumption, compared to just 15% in 2016. We expect this trend to continue into 2018 amid the lower production expectations for the 2017-18 NNE sugar cane crop. Overall ethanol production in Brazil is expected to remain stagnant due in large part to older cane in the fields and lower crushing volumes offsetting an anticipated increase in the ethanol mix. We expect Brazil will remain a net importer of ethanol for a second consecutive year,” Dudden concluded.

Read more from S&P Global Platts.

Brazil, Ethanol, Ethanol News, Exports