Brazil widens limit on ethanol blend

The mandatory ethanol blend in gasoline in Brazil can now be reduced to 18%, from 25% previously. The new limit, which was outlined in an executive measure published in the official gazette, goes into effect immediately, meaning the government can now lower the ethanol blend below 20% if it chooses to do so. Although the measure is not directly related to sugar, a change in ethanol policy can potentially impact Brazil’s sugar production, as both products compete for the same feedstock. (April 29,2011)