Brazil’s record 2020 ethanol production may fall short of demand for Jan-April 2020

In Brazil, Reuters is reporting that despite a record 35 billion litres in ethanol production, the country may face shortfalls during the off-season beginning now, when sugarcane is not in production. Production picks up in April. “We don’t see a comfortable stock situation this year. Consumption levels are very high. We believe the market will be very tight around February or March,” Matheus Costa, a sugar and ethanol analyst with broker INTL FCStone told Reuters.

Ethanol demand surged in Brazil duer to rising gasoline prices which prompted flex-fuel drivers to switch to more ethanol. Hydrous ethanol sales for October topped 2 million liters in the center-south of the country, a record. Overall carry-over stocks on hand are estimated by local authorities at 7.62 billion liters, less than needed to provide 2 billion liters of supply through the end of March.