After a season in which hydrous ethanol lost ground to gasoline, the renewable fuel is likely to recover some share in the Brazilian market in 2022/23 (April/March) due to high oil prices as a result of the war in Ukraine, said StoneX on Wednesday. At the same time, StoneX projects a 5.6% increase in ethanol production from sugarcane in Brazil’s center-south region in 2022/23, to 25.5 billion liters, while the production of fuel from corn should jump 18, 9%, to 4.2 billion liters, with capacity expansion of plants. “We have started to consider a greater participation of hydrous ethanol in the consumption of Otto Cycle based on the upward bias for gasoline prices, while the productive recovery in the center-south region could provide alcohol competitiveness”, said Marina Malzoni, analyst at the StoneX. According to her, it will be important to assess the prospects for the oil market, especially amid turmoil between Russia and Ukraine, as well as the possible progress of negotiations regarding the nuclear agreement between the United States and Iran.
Sources: Reuters/União Nacional da Bioenergia (*Translated by Ia Niani)