Does Brazil have an ethanol "bubble"? And will it burst?
The headline on this story from Dow Jones Newswire - "Is Brazil's Ethanol Bubble Set To Cool?" - is a bit alarmist, don't you think? I think the news in the story - that Brazil's ethanol industry may soon slow down - is important, but I don't think it's fair to call a system that has been making the biofuel for decades a "bubble." Thankfully, the lede - "Is Brazil's white-hot ethanol sector set to cool?" - is a bit more tempered.
Anyway, Dow Jones reports that prices for Brazilian ethanol mills have jumped up between 30 and 100 percent since last year. Even prices for equipment used in milling projects are up 10-15 percent. Add in a global sugar surplus, and all that Brazilian yellow gold might soon be much harder to come by. Read the rest over at Cattle Network.
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[Source: Grace Fan, Dow Jones Newswires]
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