Brazilian ethanol exports reached 137.4 million liters (36.3 million gallons) in April, up 77% from 77.7 million liters in March and up 33% from 103.3 million liters the same month last year, according to the latest data from the Secretariat of Foreign Trade released Friday.
The higher result was anticipated, as a dramatic surge in US prices from February to March opened the arbitrage window for Brazilian exporters to ship product there.
The breakdown of destination countries was not available at this time. However, most industry participants expect the majority of the shipments to have headed to the US. "I can count at least three vessels," said a trader.
Kingsman, a unit of Platts, estimates that at least 100 million liters of April exports were destined for US ports.
Exports are expected to decrease in May, as US prices started to retreat in April on easing supply concerns.
FOB Santos anhydrous ethanol at $660/cu m on Friday's close -- the lowest in almost three months.
Currently discussions are at standstill, as prices in the US continue to melt. The arbitrage for Brazilian product arriving in the US in June is now assessed closed by $153/cu m (58 cents/gal).