Weak dollar may benefit U.S. ethanol exports

According Reuters, a shaky U.S. dollar and limited supplies of Brazil’s cane-based ethanol could allow U.S. producers of corn ethanol to enter the European or Asian markets. Historically high sugar prices, demand from the transportation sector, as well as the 36% appreciation of the Brazilian currency against the dollar this year, are making Brazil’s ethanol prices “not viable for exports” in the coming months, an analyst said. But U.S. shipments could be limited because increased exports would boost corn usage, “which will in turn tighten up the balance sheet” of the crop, a Prudential Bache Commodities analyst said.

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