Sugar Update Daily Newsletter 20 June 2014

Kamal J ain Trading Services Pvt.
Ltd 1 Sugar Update

We are in the process of launching our website www.kamaljaintrading.com, where you will get the latest updates on Sugar and
Sugar News from around the world.

DAILY NEWS LETTER Friday, 20
th
June 2014
Tel : 020-26899931,65262732/33 Fax:020-26898047
Mail: kamaljaintrading@rediffmail.com
kamaljaintrading@yahoo.com
Kamal Jain Trading Services Pvt. Ltd.
Sugar House, Row House No. 54, Erica,
Magarpatta City, Hadapsar, Pune-411028.
Dear Sir,
Requesting all our valued readers to kindly subscribe to Sugar Update so as to get regular copy from us. WE
REQUEST OUR SUBSCRI BERS TO PROVI DE US WI TH ADDI TI ONAL E-MAI L I DS ON WHI CH YOU
WISH THE SUGAR UPDATE TO BE SENT. If you do not wish to receive it, please inform us to remove
your name from recipients list.
Dear readers,
Please post us with your valuable comments on Sugar Update at our email IDs which would help us serve
you better with the latest news and updates on the Sugar Industry.

News in detail
National News
Rupee down 18 paisa vs dollar in early trade
The rupee lost 18 paise to 60.26 against the dollar in early trade at the Interbank Foreign Exchange market due
to increased demand for the US currency from importers.
Forex dealers attributed the rupee's fall to increased dollar demand from importers amidst rising global crude
prices but said that a higher opening in the domestic equity market and euro's strength against the US currency
capped the fall to some extent.
Yesterday, the rupee rose 31 paise, logging its best single-day gain in over a month, to end at 60.08 as the
American currency weakened on US Fed keeping its policy of ultra-low interest rates intact. Meanwhile, the
benchmark BSE Sensex rose by 45.08 points, or 0.18%, to 25,246.88 in early trade on Friday.
India: Nagpur first to have ethanol-run bus, but civic heads unaware
Nagpur is the first city in the country where 100% ethanol-fuelled bus would run on a pilot basis. The bus
would be launched in the city in next 2-3 weeks.
Strangely, municipal commissioner Shyam Wardhane said that surface transport and highways minister Nitin
Gadkari had advised the NMC to generate ethanol from sewage treatment plants to be set up at many places.
Gadkari has always championed the need for the use ethanol as a fuel for vehicles. He had recently pushed the
need of importing engines that can run on 85% blending of ethanol in the country. The Scandinavian
commercial vehicle manufacturer Scania made a presentation in the ministry recently to explore the possibility
of plying such bus.
Since ethanol-based buses can ply only in areas where enough ethanol is available, the government will explore
to start such services in manageable areas such as within cities. Towns and cities in major sugar producing
states such as Maharashtra, Uttar Pradesh, Karnataka and Punjab are likely to be the options for starting such
experiments.

News at a Glance
Rupee down 18 paise vs dollar in early trade
India: Nagpur first to have ethanol-run bus
Indian Sugar future is raised by 0.84% to RS 3,119 per quintal
Bulk buying sweetens sugar
ICE sugar hits 4-week high on Brazil supply worries
Sensex drops as Brent crude hovers above $114 a barrel
MH: Shirpur co-operative sugar factory will start soon
MH: Bankrupt factories will start again
UP: Auction of Sugar from Modi sugar mill
UP:Govt may allocate funds to co-op mills for cane dues payment
Thailand: Khon Kaen Sugar Industrys view
Thailand: Khonburi Sugar plans shift towards ethanol business
Monsoon fears, Brazil ethanol drive sugar rally
Nepal:Capacity utilisation of manufacturing units down 14 per cent
Brazil: Brazil to mix more ethanol in petrol
US: Ethanol output hits record

Market Update
Sensex 25242.62(40.82)
Crude Oil $106.43(0.46)
USD 60.27 INR
Pound 102.79 INR
Brazil 27.11 INR
Euro 82.07 INR
White Sugar 488.40 $/MT
Raw Sugar 17.88 c/lb
Please note that the above values are as
of 20-J une-2014 at 12.00PM I ST

Kamal J ain Trading Services Pvt. Ltd 2 Sugar Update
The Gadkari-promoted Purti Power and Sugar Limited (PPSL) is also engaged in the manufacture of ethanol.
PPSL has often supported the idea of increasing the ethanol proportion to be blended in petrol to 10% at least.
Ethanol is not just a clean, but the cost of the fuel is also less.
The PPSL's plant at Bela, 40 kms from Nagpur, has a facility to make ethanol out of molasses and is currently
supplying it to the PSU oil companies. It has plans to set up a bio-waste ethanol plant too. The new plant may
have a capacity of to make 15,000 litres of ethanol a day.
Gadkari had asked the department to study whether the five big companies Volkswagen, Ford, Toyota,
Honda and Fiat can import E85 engine here, like they do in Brazil and Canada. E85 engines can run with
85% blending of ethanol.
(Courtesy-Times of I ndia)
Sugar stocks Rally
Sugar stocks gained on renewed buying.
Triveni
Engineering
& Industries
Shree
Renuka
Sugars
Dhampur
Sugar Mills
Sakthi
Sugars
Simbhaoli
Sugar Mills
Bajaj
Hindusthan
Dwarikesh
Sugar
Industries
Balrampur
Chini Mills
up 5.95% up 5.67% up 5.59% up 4.95% up 4.04% up 3.96% up 3.82% up 3.28%
Increase in crude oil prices has sparked worries about India's macroeconomic situation as India imports majority
of its crude oil requirements. Increase in crude oil prices has raised concerns of increase in fuel price inflation
and increase in India's current account deficit and fiscal deficit
Militant violence in Iraq which is a key oil exporter in the world has sent crude prices higher over the past few
days. Brent crude futures for August delivery were down 6 cents at $115 a barrel today, 20 June 2014. The
contract gained 80 cents to settle at $115.06 a barrel yesterday, 19 June 2014, the highest close since 6
September 2013.
Indian Sugar future is raised by 0.84% to RS 3,119 per quintal
On Friday, at NCDEX at 1:35 PM, the key June contract is raised by RS 27 or 0.84% to RS 3,119 per quintal
with an open interest of 4670. But July future was declined by RS 8 or 0.26% to Rs 3,037 per quintal with an
open interest of 35050 lots.

Bulk buying sweetens sugar
On Thursday, sugar prices improved by 10-15 a quintal on the Vashi wholesale spot market on higher demand
for fine quality. Naka rates were up by 20-30 a quintal for the same reason. Mill tender prices ruled unchanged
as producers continued selling at current level.
High demand from stockists for fine/bold variety lifted prices by 10-15 in the spot and naka trade, while
continuous selling by mills kept tender rates unchanged. Maharashtras producers sold about 60,000 bags.
Upcountry buying is missing here since long forcing producers to sell on local markets. On the export front
also, chances are very bleak. Arrivals in the Vashi market were about 60-62 truckloads and local offtake was
58-60 loads.
S-Grade M-Grade
BSMA's spot rates 3,003-3,152 3,142-3,292
Naka Delivery Rates 2,970-3,050 3,070-3,190
(Courtesy-The Hindu Business Line)
ICE sugar hits 4-week high on Brazil supply worries
Sugar futures extended strong gains from the previous session to hit a four-week high on Thursday, as market
players continued to assess the outlook for Brazilian supplies.
Brazil uses sugarcane to make ethanol, unlike the U.S. where corn is primarily used. The South American
nation is the world's largest sugar producer and exporter, with the U.S. Department of Agriculture estimating
the nation accounts for nearly 20% of global production and 39% of global sugar exports.
(Courtesy-investing.com)
SPOT PRICE QUOTES
(RS) Friday, J une 20th, 2014 ,01:41 AM
Location M-Sugar S-Sugar
Kolhapur 3063.15 2955
Vashi - 3075.8
Kolkata 3280
Erode 3173 3110.5
Kanpur 3322.5
Muzzaffar Nagar 3268.5
Delhi 3305
FUTURE PRICE QUOTES
Friday, J une 20th, 2014 ,01:41 AM
Product Name-Sugar M
Exp DT Open High Low LTP Chg
20 Jun 3119 3124 3118 3120 27
18 July 3048 3048 3037 3037 -8
20 Aug 3070 3080 3070 3072 -2
19 Sep 3135 3138 3135 3135 2

Sugar futures may trade on mixed note
Sugar futures may trade on a mixed note. Increase in the subsidy on raw sugar exports coupled with forecast of
below normal rains may support prices. Expectations of demand from bulk consumers due to rising
temperatures in the north may also support prices. However, higher supplies and lack of fresh export orders may
pressurize prices at higher levels.
Angel Commodities' report on Sugar Global sugar prices traded on a bullish note on coverings of short positions
by the funds on the back of dry weather concerns in Brazil and India. Expectations of pickup in demand and
chances of diversion of cane towards ethanol also supported prices. LIFFE as well as ICE Raw sugar settled
2.62% and 2.75% higher.
According to UNI CA, Brazilian mills produced 5.44 mn tn of sugar till end of May compared to 5.64 mn tn last
year. Prices declined over the last few days on ample supplies coupled with fears of large delivery and higher
global stocks. According to FC Stone, Centre South sugar output for 2014-15 season is forecast at 33.1 mn tn,
while sugarcane crushing is seen at 585.85 mn tn.
(Courtesy-money control)
Sensex drops as Brent crude hovers above $114 a barrel
Key benchmark indices dropped to fresh intraday low in early afternoon trade as concerns about India's
macroeconomic situation resurfaced as crude rose. The barometer index, the S&P BSE Sensex, was down
142.27 points or 0.56%, off 321.87 points from the day's high and up 34.32 points from the day's low. The
market breadth indicating the overall health of the market turned negative from positive in early afternoon trade.
The index lost 176.59 points at the day's low of 25,069.66 in early afternoon trade, its lowest level since 16 June
2014. The index jumped 179.60 points at the day's high of 25,425.85 in early trade.
The CNX Nifty was down 47.55 points or 0.63% to 7,510.65. The index hit a low of 7,502.55 in intraday trade,
its lowest level since 16 June 2014. The index hit a high of 7,606.45 in intraday trade. On BSE, 1,543 shares
declined and 1,165 shares gained. A total of 121 shares were unchanged.
(Courtesy-Business Standard)

State News
Maharashtra
Shirpur co-operative sugar factory will start soon

The founder of Shirpur co-operative sugar factory and X-MLA Mr. Shivajirao Patil has given information in
press conference that, to clear the factory loans, some moneys will be arranged by selling factory assets. After
clearing loan, factory will start with new management.
Mr. Patil stated that, co-operative minister, factory management and bank has conducted meeting in this regard
and the decision is taken to sell some factory asset, clear the loan and restart the factory. May be this process
will take 1 month time. Still, in October, factory will start crushing.
(Courtesy-Sakal)
Bankrupt factories will start again

Factories like Sudhakarrao Naik and Jay Kisan are on liqudatorship due to lot of issues. These factories are
having approximately RS 100 crore loans. After meeting with state chief minister Mr. Prithviraj Chavan,
decision has been taken to start these factories on long term lease. Government loan will be forgiven, but private
loan should be clear by the factory.
(Courtesy-Lokmat)
Uttar Pradesh
UP: Govt may allocate funds to co-op mills for cane dues payment
The Akhilesh Yadav government might allocate over Rs 600 crore to cooperative sugar mills for payment as
cane dues to farmers. The allocation, likely to be tabled in the Budget session of the UP assembly, could open a
fresh front between the state government and private sugar mills which have been demanding government
subsidy to clear cane dues.
23 cooperative sugar mills in the state had total outstanding dues to the tune of nearly Rs 1,900 crore in this
crushing season. They have paid about two-thirds of the dues while a balance of nearly Rs 600 crore remains.
The cane development department had made a demand before the state government, which, in all probability
would be reciprocated.
Individually, most mills have made 50-80% of the payments. In fact, the mill in Najibabad, Bijnor, has paid
100% dues to farmers. Cooperative sugar mills are located in districts such as Saharanpur, Muzaffarnagar,
Baghpat, Anupshahr and Bijnor.

The payment had been made as per the full statuary advisory price (SAP) of Rs 280 per quintal. Hence, there is
all the possibility that the department will get the due. The mills in the cooperative sector are marred by low
efficiency. While private sugar mills work at a capacity of around 10,000 tonne crushing per day (tcd), the
cooperative ones have a capacity of around 5,000 tcd. In fact, in some cases, the capacity goes down to almost
2,500 tcd.
Technology upgrade is also required in case of cooperative sugar mills. Cooperative sugar mills have crushed
around 700 lakh quintals of sugarcane this season. This is almost 1/10th of the total capacity of private sugar
mills. The mills might also get funds from the state government for technology upgrade. Fund allocation to
cooperatives is likely to be in the form of an unsecured loan which would subsequently get converted into
state government equity.
UP: Auction of sugar from Modi Sugar mill

SDM Krishna Karunesh has given information that, 2012-13 crushing season, Modi sugar mill has not paid the
farmers sugarcane bill of RS 6,43,00,000 and tehsil collection charge of RS 1,72, 00, 000. So government has
sealed the factory go-down and decided to auction the sugar of the factory today. But yesterday, Factory
management met SDM and submitted a letter to stop the auction.
(Courtesy-Navbharat Times)
Karnataka
Sugar cane farmers to hold dharna in front of CM Siddaramaiah's house
Sugarcane farmers have now decided to hold a dharna in front of chief minister Siddaramaiah's residence to
press their demand for clearing of dues by sugar mills in lieu for the sugar cane supplied by them.
According to Devaraj, President of the sugar cane farmers association, 50 odd sugar factories in Karnataka owe
Rs 3,500 crore to the farmers, despite the state government's directive asking them to clear the dues of farmers.
According to him, 24 sugar mills in the state are either owned by ministers, legislators and parliamentary
members and their lobby is strong, for which may be the government has failed to act against these sugar mills.
I nternational News
Thailand: Khon Kaen Sugar Industrys view
World sugar balance might go into deficit in 2015good for KSL
Adverse weather in Brazil will limit global sugar supply next year. Morgan Stanley forecasts that the global
sugar surplus will decline from 6.0mt in 2014 to 1.82mt in 2015. KSL's expect the global sugar market to be
balanced or in deficit next year. As such, the global sugar price should rise to 19-23 cents/lb range next year
from 15-20 cents/lb this year.
Thai cane production to increase next year
KSL guides that Thai cane production will rise from 103mt this year to 110mt in 2015. Ample rain during June-
Oct would ease concerns over unfavourable conditions earlier in the year. Also, the govt has encouraged rice
farmers to switch to sugar cane, boosting the cropping area. We expect KSL's capacity to hit 10mt of cane in
FY15 (from 8.5mt this year), due to capacity expansion at its mills in Loei and Khon Kaen provinces.
Concerns over KSL's sugar sales volume this year
Big sugar inventories in Brazil left over from last year caused industry-wide sugar deliveries in Thailand to be
postponed. The paucity of deliveries in 1H14 generated concerns over whether KSL will hit its FY14 sugar
sales volume target of 810kt (it reported 1H14 sales of only 260kt). The firm normally delivers sugar sales
volume of about 390kt in the second-half of its financial year (May-Oct). We maintain our FY14 sugar sales
volume assumption at 740kt. Sensitivity analysis suggests that for each additional 10kt that sugar sales exceed
our assumption, profit would beat our FY14 forecast by 1.1%.
Power and ethanol businessesthe key FY14 drivers
The power and ethanol units will continue to drive earnings growth through FY14. A new power plant in Loei
Province will boost KSL's electricity sales this year. We also expect ethanol consumption in Thailand and the
average sales price to increase further. However, there is doubt that ethanol sales volume will achieve KSL's
target of 105m litres, due to the absence of export sales this year (it reported 1H14 sales of only 43m liters). As
such, we have cut our FY14 ethanol sales volume assumption 14% to 90m liters.
(Courtesy-Nation Multimedia)
Monsoon fears, Brazil ethanol drive sugar rally
Sugar futures took their gains in two sessions above 5% as weak data on Indian monsoon added to concerns
over a Brazilian ethanol change to question ideas of ample supplies of the sugar.

Raw sugar for July jumped 2.3% to $17.94 cents a pound in midday deals in New York, its highest in nearly a
month, taking gains in two sessions to 5.1%. The October contract, which now attracts higher trading volumes,
gained 1.9% to a one-month high of 18.69 cents a pound.
The peaks followed the release of data showing India's monsoon continuing to run late, and deposit
disappointing levels of rain, during its early stages, raising concerns over crops including sugar cane.
Reason to add back risk premium
India's monsoon rains were, in the week to Wednesday, 45% below average, only a small improvement on the
48% deficit the week before, weather officials said, estimating that the weather pattern was running four days
behind schedule too.
Soft commodities analyst in London said, if noting that strong water levels in irrigation systems were reducing
concerns over the late monsoon for now. At Citigroup in Chicago, Sterling Smith said that "there is an issue
with the monsoon in India. It is likely giving the funds cause to cover their short positions.
Queuing ships
However, other reasons too were cited as behind the rally, with the London analyst noting that the "vessel line-
up in Brazil and has picked up a little bit compared with last month", indicating a potential squeeze on the
country's exports.
This may only get more acute if the El Nino which often causes a weak monsoon arrives as expected, with
the weather pattern also linked in Brazil to heavy rains, which can hamper loading of sugar cargoes, which are
damaged by water, in all but roofed facilities.
The US Climate Prediction Center forecast an 80% chance of declaring an El Nino in the autumn, with one key
indicator, the weekly sea surface temperature departure in a key part of the Pacific, 0.4 degrees Celsius above
average - 0.1 degrees below the El Nino threshold.
More ethanol
Citigroup's Mr Smith also cited talk of an agreement between Brazilian authorities and vehicle makers to raise
by 1 point to 26% the proportion of ethanol blended into gasoline in the South American country. That means
more cane going for making ethanol and less for sugar, which should make sugar prices go up.
Sucden Financial estimated at 575,000 tonnes the amount of sugar production that will be lost to enable the
increase in output of ethanol, of the anhydrous variety which can be mixed with gasoline. Cane industry group
Unica, and oil giant Petrobas, were pressing for a 27.5% blend rate.
(Courtesy-Agrimoney)
Nepal: sugar-manufacturing units were found to be the most inefficient
Of the industries covered by the survey, sugar-manufacturing units were found to be the most inefficient in
exploiting resources. Sugar-producing companies in the country had production capacity of 171,250 tonnes in
the six-month period, but output stood at a mere 17,071 tonnes. This led average capacity utilisation rate of
sugar-manufacturing units to dip to 9.97%.
Sugar-producing plants failed to make maximum use of resources in the six-month period due to industrialists
decision to fix sugarcane prices at lower end, which prompted farmers to postpone sales of the product. Also,
most of the sugarcane was yet to be harvested during the review period.
(Courtesy-The Himalayan Times)
Philippines: Guv backs creation of pollution control body
The proposed creation of the Provincial Pollution Adjudication and Monitoring Board by two committees of the
Sangguniang Panlalawigan to monitor environmental law compliance of sugar mills and distilleries in Negros
Occidental, got the support of Government..
Gatuslao, who chairs the SP Committee on Laws, said he and Board Member Patrick Leonard Lacson, chairman
of the SP Committee on Environment and Natural Resources, noted that many sugar mills committed violation
on environmental laws, and paid fines not less than P10, 000 a day to the national government. They are
studying the possibility of collecting the fines from violators, which will be given to communities affected by
the pollution.
(Courtesy-visayandailystar)
Australia: Fire-damaged mill to start crush late
A Bundaberg, Queensland sugar mill will start crushing almost a month late as it continues to recover from an
electrical fire that caused $3 million of damage mid last month. Bundaberg Sugar's Bingera Mill is expected to
begin crushing on July 21, three weeks after the initial estimated date, and three weeks after the company's other
Millaquin Mill. The unsuspicious fire broke out in a switchboard and spread to a conveyer belt.
General Manager of operations David Pickering says recovery crews are making very good progress, with all
major items expected to be delivered by next week. The change will stall harvest, but that won't cause big

problems because the crush is shorter anyway, and growers were already going to hold off maximising CCS
values. Some cane will be shared between the mills.
There will be some cane from the north side trucked across to Millaquin, but mostly Bingera will crush its own
cane. The region's crop is sitting at 1.45 million tonnes, which is a "significant drop" on the expected average
1.8 million.
(Courtesy-ABC Rural)
Fiji: A win-win situation
To provide relief to the farmers, government will make it a priority to create a reserve fund so that our farmers
are paid in full upon supplying cane to the mills rather than waiting for payment in instalments for more than a
year. It is unfair to our farmers to sell their produce and then wait for so long to get your payment.
They will look at the possibility of building smaller and efficient sugar mills in main cane producing areas like
Seaqaqa so that farmers can save costs in transporting the cane to mills.
It will be made sure that efficient milling and transport system to be implemented so that our farmers can be get
benefited. Farmers are a major stakeholder in sugar industry and you will be consulted and heard in the
decision-making process through your representatives.
(Courtesy-Fiji Times)
Fiji: Low cane supply halts crushing at Labasa Mill
Cane crushing at the Labasa Mill started yesterday but was stopped for a few hours due to low cane supply. The
Sugar Cane Growers Council says many cane growers have not yet begun harvesting as there had been some
confusion regarding the crushing commencement date.
The Labasa Mill Management says they do not foresee any major hiccup apart from some minor teething
problems that may be encountered in the beginning of the season. The Sugar Cane Growers Council is urging
all gangs to take advantage of the good weather and commence harvesting without any further delay. Those
facing problems are urged to get assistance from the Council.
(Courtesy-Fiji Broadcasting Corporation)
Ethanol News

Khonburi Sugar plans to invest Bt4.3 billion in ethanol business and expansion of its cane-processing capacity
to boost revenue by 20-30% in the next two years, targeting 10% growth for this year. Khonburi is preparing to
go on an overseas road show to attract investors amid Thailand's improving business and investment climate.
Company president Thaus Vanakornkul said it wanted to lower its heavy reliance on sugar for revenue by
moving towards ethanol production because of strong demand for it as an alternative to petrol. Other sugar
manufacturers have gradually turned towards ethanol business. The Bt4.3-billion investment will comprise two
parts.
First will be construction of an ethanol factory with production capacity of 200,000 litres per day, with
investment of Bt1.18 billion. The remaining Bt3.12 billion will be used to increase cane-processing capacity by
12,000 tonnes a day. The construction will take 15 months.
The sugar price has passed its lowest mark for this year, and is currently 17 US cents per pound, up slightly
from the lowest point of 14 cents a pound. Furthermore, the company will recognise proceeds of about Bt80
million from the sale of electricity to the Provincial Electricity Authority in the fourth quarter. This would boost
this year's gross profit to 21% from last year's 18%. The outlook for improving sugar prices should enhance
the appeal of sugar sector stocks.
(Courtesy-nation multimedia)
Brazil to mix more ethanol in petrol
The Brazilian government plans to conduct tests over the next two months on the use of a higher percentage of
ethanol in commercial gasoline. The test period would be used to determine the viability of increasing the
mandatory blend of the bio-fuel in petrol at the pump, and the trial would begin as soon as possible.
Brazil is already blending as much as 25% ethanol into petrol. The cane industry is seeking a 27.5% maximum
and lawmakers recently pushed unsuccessfully for a 30% blend ceiling.
Controlling inflation
Raising the blend requirement would favour the Brazilian cane industry, as well as state-run oil company
Petroleo Brasileiro, but the measure has faced government resistance in the past due to fears that a greater
demand for sugar cane could spur inflation. The local automotive industry also came out against the increase in
the blend saying it would hurt cars performance.

Brazil's government decided to increase the amount of biodiesel, mostly made from soy oil, used in diesel to 6%
the current five, starting in July. A second increase to 7% is scheduled for November.
Reducing imports
Debt-ridden Petrobras would benefit from a higher ethanol blend requirement because it would enable it to
reduce the amount of petrol it imports and sells at a loss in the domestic market. President Dilma Rousseff's
government strictly controls fuel prices as a means to control inflation, and her finance minister Guido Mantega
is on Petrobras' board. Despite support for the increased blend from the agriculture, environmental, energy and
trade ministries as well as the oil and gas regulator ANP, Mantega has so far opposed any increase in the blend.
US ethanol output hits record
US ethanol production soared to a record high as plants prepared for rising seasonal demand against a
background of positive margins, supported by weak corn prices and rising crude oil values.
US biofuel plants produced an average of 972,000 barrels a day of ethanol last week, up 28,000 barrels a day on
the previous week, and the highest figure since records began four years ago.
Some increase had been expected, given the weak markets in corn - the main raw material for US ethanol
producer - and strength in gasoline prices, up more than 6% in the past two weeks, buoyed by the latest round of
Middle East unrest which has underpinned energy market overall.
Ethanol futures for August tumbled 3.7% to $1.991 a gallon in Chicago. Corn futures for July, meanwhile,
stood 1.0% higher at $4.43 a bushel.
High crude, shifting trade patterns brighten ethanol prospects
An extended period of higher crude oil and gasoline prices and low corn prices could result in surprisingly large
amount of corn used for ethanol production. The economists note the recent decline in U.S. ethanol imports and
expansion in exports starting last fall. Imports and exports were evenly balanced in September 2013, but net
exports were 25 million gallons in October 2013 and averaged nearly 60 million gallons per month from
November 2013 through April 2014.
Domestically, there is a growing opportunity for domestic ethanol consumption to expand beyond mandated
consumption levels, they continue. Positive blending margins should incentivize the expansion of consumption
of higher blends of ethanol, both E15 and E85. The pace of expansion will be determined by expectations for
the duration of favorable blending margins and the speed at which the deployment of infrastructure can be put
in place. The duration of higher crude oil prices will be influenced by the extent and duration of production
interruptions in the Middle East. These market factors may push ethanol production levels to their highest
ever, and with it, corn use.

Disclaimer: The above are the independent views. However by coincidence if resemblance to anybody anywhere in past, present &
future we are nowhere responsible & will not entertain/respond to claims or queries raised we have no intention to hurt anybody
and our due apologies given in advance. But we would like to receive your comments, feedback and guidelines about the article and
if you like we will continue such article.

Sugar Update Daily Newsletter 20 June 2014

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Sugar Update Daily Newsletter 20 June 2014

Uploaded by

Copyright:

Available Formats

Kamal J ain Trading Services Pvt.

Ltd 1 Sugar Update

You might also like