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SAs expected, ethanol imports have also been strong this
year. It is still difficult to gauge
what imports levels may be as gasoline demand is peaking.
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SBrazil is the primary source of imports. We are receiving volumes directly from
Brazil, which are subject to the full import tariff, and we are receiving
volumes indirectly through the Caribbean Basin Initiative countries – Costa
Rica, El Salvador, Jamaica. Trinidad/Tobago.
These countries are not subject to the ethanol import tariff. Most of the ethanol they send to the United
States was produced elsewhere. These
countries then remove water and/or denature the material to prepare it for
fuel use in the U.S. Brazil is a major
source of their ethanol supply.
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SUnlike U.S. corn-based ethanol that is produced year round
from corn that is harvested or stored, Brazil’s production uses sugar cane as
the feedstock. This product is not
stored, and as result, Brazil’s ethanol production is highly seasonal. The lowest production is in January through
April, and production peaks in the August through October period. Brazil\’s peak ethanol production can be
six times what it was in the January through April period.
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SData is not yet available on monthly import volumes for the
summer months. Anecdotal information
speaks of numerous cargo liftings, and price incentives would point to strong
imports as well.
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