Brazil ethanol exports to stay weak in 2011 -trade

Reuters Africa
Wed Sep 15, 2010 9:55pm GMT
By Inae Riveras

* Strong currency makes Brazilian ethanol less competitive
* More flex cars to raise local demand for ethanol
* Supply uncertain as dry weather could dent 2011 harvest

SAO PAULO, Sept 15 (Reuters) - A strong Brazilian currency and high global sugar prices will keep foreign demand for its cane-derived ethanol subdued in 2011, traders said on Wednesday, but domestic demand should absorb much of the supply.

Traders, speaking on the sidelines of a biofuel seminar in Sao Paulo, said they expected shipments during next season, the 2011/12 crop year, to remain unchanged from this year's 1.3 billion liters. Brazil should produce about 28.4 billion liters during the current season, the government forecasts.

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