DTN Ethanol Center

The article linked above is full of interesting facts about Brazil’s ethanol industry. The point I found interesting and used for the headline is the fact that ethanol exports from Brazil to the U.S. is expected to be 793 million gallons to the U.S. for 2007. This is in the neighborhood of 8% of the total ethanol used in the U.S and about 14% of total Brazilian production.

It seems the 54¢ per gallon tariff is not slowing imports much and certainly a nice piece of change in Uncle’s pocket. This also shows there is room in the U.S. ethanol market for corn and sugar based fuels  and that market continues to grow. A note for the “get rid of corn use sugar” crowd: The U.S. ethanol consumption is now almost two times the total Brazilian production and I am pretty sure Brazilian drivers do not want to give up their cheap fuel to put American ethanol companies out of business.

Finally, now that corn prices are falling steadily following the runup due to spring floods in Iowa and elsewhere, there is zero news about the fact. VeraSun Energy (VSE: 0.00 N/A N/A) should issue their 2nd quarter earnings report early in August. This is one report I am very interested in hearing/reading!

Note: I have a long position in VSE.