Brazilian ethanol demand seen flat or falling due to economic climate

In Brazil, ethanol demand is expected to remain steady or even fall this season as the worsening economic climate hits sales at the pump. Demand rose 20% in 2015, supporting prices along the way, weighing on the fuel’s economic advantage against gasoline. Agroconsult thinks demand for hydrous ethanol could fall by 600 million liters, cutting anhydrous’ share of ethanol demand to 28% from 30% in 2015. With mills in a better financial position having already hedged much of the sugar from the impending crush, they don’t need to sell ethanol to pay weekly bills as they did last year, which will help to support prices in the face of shrinking demand.

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