USA: us ethanol exports to brazil surge on wide-open arbitrage

The combination of US ethanol prices at 12-year lows and soaring prices in Brazil has opened a wide arbitrage to import anhydrous ethanol from the US. “We see a potential anhydrous export from US to Brazil of 250,000 cu m in February and further 200,000 cu m in March,” said a US-based trader.

A large Brazilian trading company estimated that January to March the total volume of anhydrous imported from US might reach 712,000 cu m, being 270,000 cu m arriving through the Center-South ports and the balance 442,000 cu m through North-Northeast ports.