Government schedules June decision on increasing ethanol blend in gasoline to 32%

DATAGRO BREAKING NEWS

● The CNPE meeting to deliberate on raising the anhydrous ethanol blend in gasoline from 30% to 32% is expected to take place in the first half of June, according to Minister of Development, Industry, Trade and Services Márcio Rosa.

● The minister stated that approval of the E32 blend is virtually certain, as the measure has unanimous support and is part of the government’s strategy to reduce the impact of rising oil prices.

● On an annualized basis, the 2-percentage-point increase in the blend is expected to raise demand for anhydrous ethanol by nearly 930 million liters.

● According to a government announcement made in early May, the measure may be temporary in nature, with an initial validity of 180 days, renewable for an equal period.

DATAGRO BREAKING NEWS

CS Brazil 26/27 Crop Update: Cane Crushing Beats All-Time Record for 2H April

● Cane crushing in CS Brazil reached 40.06 mmt in 2H April, up 123.1% YoY, according to UNICA — the highest volume ever recorded for the period.

● On a cumulative basis, cane crushing totaled 60.46 mmt since April 1, up 74.6% YoY.

● TRS level increased 6.3% to 116.89 kg/tc in 2H April, bringing the average to 112.58 kg TRS/tc since April 1 (+5.4% YoY).

● Sugar production mix fell 5.35 p.p. YoY to 40.34% in 2H April, averaging 38.16% since April 1 (-7.07 p.p. YoY).

● Sugar production totaled 1.800 mmt in 2H April, up 109.5% YoY, bringing the cumulative total to 2.475 mmt since April 1 (+55.2%).

● Ethanol production increased 105.8% year-on-year to 2.039 billion liters in 2H April, of which 392 million liters came from corn (+9.4% YoY).

● Since April 1, total ethanol production reached 3.288 billion liters (+71.8%), of which 804 million liters came from corn (+12.2%).