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Conab expects Brazilian ethanol demand to increase eventually but now is stagnant

 

In Brazil, the government’s agricultural statistics agency Conab says it expects ethanol’s prospects to improve going forward due to the potential for increasing fossil fuel prices. Demand remains stagnant for the moment in the domestic market, however, which combined with strong international prices for sugar and currency fluctuations that supports sugar exports has led to lower ethanol production this season. Additional cane area and leftover cane from last season mostly went towards increased sugar production as well.

Biofuels Digest

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