Brazil’s ethanol stocks fall 25% since E30 implemented
In Brazil, StoneX says Brazil’s ethanol inventories have fallen about 25% since the E30 blend mandate took effect, after the higher blend added more than 600,000 cubic meters of ethanol demand. The next step, the E35 ethanol blend, depends on extensive testing before approval, so the size of anhydrous ethanol demand in the coming season now rests on test results. A successful outcome would add an estimated 1.5 million cubic meters of anhydrous ethanol demand, while a failed one would push the market back to an interim mandate and lower demand instead. For mills, distributors and fuel buyers, the gap between those two outcomes is a key swing factor in Brazil’s ethanol balance.
Category: Fuels
