sugar set to rebound, page-7

Or maybe not (given SB1 closed down another 2% @11.8c) on below story:

Brazil: ‘ethanol blend likely to remain at 20%,’ says agriculture minister

Ø Brazil’s mandatory ethanol blend in the country’s gasoline will most probably be maintained at 20%, Sugarnetwork reports, citing Brazil’s Agriculture Minister Luís Carlos Guedes. Guedes was nominated in June to replace outgoing Agriculture Minister Roberto Rodrigues. He met yesterday with Brazil’s sugar and ethanol mills representatives to discuss the sector.

Ø According to Brazilian regulations, the blend of ethanol in the country’s gasoline is mandated at between 20% and 25%, as a tool for ensuring the ethanol supply in the domestic market.

Ø At the beginning of the current year, the Brazilian government approved the reduction from 25% to 20% ethanol blend due to depleted ethanol inventories at that time.

Ø Presently, Brazil’s ethanol stocks are at around 3.5 billion litres, 600 million litres higher compared to the same period last year, according to Brazil’s Sugar and Ethanol Chamber. However, Guedes gave no indication that the blending mandate would be raised again, despite higher ethanol stock volumes.

Ø http://www.sugaronline.com/newsprices/news.asp?storyid=63411