Price volatility seen falling as Brazil ethanol matures

Reuters.com
Tue Mar 23, 2010 9:10pm EDT
By Roberto Samora and Peter Murphy

SAO PAULO, March 23 (Reuters) - Wild price volatility in Brazilian ethanol in 2009, which caused prices to double after a panic-driven plunge, should ease as the sector consolidates with wealthy multinationals moving in, an industry leader said on Tuesday.

Marcos Jank, head of the Brazilian sugarcane industry association Unica, said the year brought two exceptional misfortunes to the sector - inability to repay large debts taken on to fund expansion and unusually wet weather that prevented much cane being harvested.

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