Brazil's 2013 ethanol exports set to grow over 32% to 4.1 billion liters

Brazil, the world’s second-largest ethanol producer after the U.S., will export 32.3% more of the biofuel this year compared with last year as domestic production grows and U.S. demand for sugarcane biofuel continues to rise, Datagro’s Director Guilherme Nastari told Valor Economico.
Exports are projected to be 4.1 billion liters in 2013, up from 3.1 billion liters in 2012, but short of a record 5.12 billion liters in 2008, according to data that Valor Economico cited.
Brazil supplied nearly 85% of all ethanol that the U.S. imported in 2012.
Ethanol availability in Brazil is expected to climb this season as sugarcane crushing in the country’s center-south region rebounds from a slump in 2010-2011. Sugarcane crushing in the region is expected to hit an all-time high of 587 million metric tons (mt) this year, up from 532.3 million mt in 2012, according to Datagro.
Sugarcane is the main feedstock for ethanol production in Brazil.
Ethanol supply for exports is expected to rise despite a government’s decision to raise the ethanol blend rate in conventional gasoline to 25%, from the current 20%, by May 1.
A 6.6% jump in the wholesale price of gasoline, announced in late January 2013, is likely to boost demand for ethanol at Brazilian pumps, as it may make the biofuel a better buy for drivers of flexible-fuel vehicles.
(March 25, 2013)