Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : $2 or higher gas - Can ethanol make a comeback? -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (1421)	7/15/2006 7:29:10 AM
From: Think4Yourself	Read Replies (1) \| Respond to of 2801

Now that's an interesting article about sugar cane ethanol. I had been thinking about rising food prices here based on corn ethanol here but most countries make it from sugar beets or sugar cane. As such prices of foods containing sugar are also going to rise.

To: elmatador who wrote (1421)	7/15/2006 2:27:14 PM
From: richardred	Respond to of 2801

Brazil Mill Ethanol Prices Rise 1.5% On Wk, 7%-8% On Month SAO PAULO (Dow Jones)--Brazil's average ethanol prices at the Sao Paulo mill gate continued to rise this week, edging up roughly 1.5% compared to a week ago, and climbing between 7% to 8% in the past four weeks due in part to heightened demand on both the domestic and international markets, said a University of Sao Paulo think tank on Friday. In the year-ago period, however, prices jumped by 16% between mid-June and mid-July, as rapidly growing sales of flex fuel cars - which can run on any combination of ethanol or gasoline - pushed up domestic demand for ethanol. "One of the principal factors for the rise in price this month continues to be heated demand on both the local and export markets," said Marta Marjotta Maistro, a researcher at the Center for Advanced Studies in Applied Economics at the University of Sao Paulo (Cepea-Esalq) to Dow Jones Newswires. "However, at the same time, you have to bear in mind that the volume of negotiations has been diminishing since the end of June," she added, noting that buyers haven't purchased in bulk in the past few weeks. Average anhydrous ethanol prices this week, without taxes, rose 1.34% to nearly 1.05 Brazilian reals ($0.48) per liter, compared to a week ago, and up 8% compared to four weeks ago. The prices are about 33% higher than the roughly BRL0.79 per liter registered at the same period a year ago. Hydrous ethanol prices, without taxes, rose 1.47% this week to nearly BRL0.91 per liter ($0.41) compared to a week ago, and up 6.8% compared to four weeks ago. The prices are 34% higher than the BRL0.68 per liter registered in the same week in 2005. Due in part to higher prices, domestic ethanol consumption has fallen off this harvest compared to the year-ago period, according to the Sao Paulo sugarcane industry association, or Unica. In May, the country's domestic ethanol use hit about 950 million liters of ethanol, while in June, the country's domestic consumption slipped to under 900 million liters, said Antonio de Padua Rodrigues, Unica's technical director. By contrast, last year Brazil consumed an average of nearly 1.1 billion to 1.2 billion liters per month. Another reason for the diminished local consumption this year is a reduction of Brazil's obligatory 25% mix of ethanol in all gasoline to 20% since March, added Rodrigues. Brazil is the world's No. 1 producer and exporter of sugar, as well as world's No. 2 ethanol producer after the U.S., but leading ethanol exporter. cattlenetwork.com

To: elmatador who wrote (1421)	7/15/2006 3:04:03 PM
From: richardred	Read Replies (1) \| Respond to of 2801

Labor, Environment Issues Could Hurt Brazil Ethanol - Government SAO PAULO -(Dow Jones)- International perception that Brazil's labor and environmental standards are poor on sugarcane plantations could hinder Brazil's goal to be the world's main supplier of cane ethanol in the future, the Agriculture Ministry said in a press statement late Thursday. Former Agriculture Minister Roberto Rodrigues was in Germany all week, where he discussed renewable energy from farm crops, especially Brazil's flagship biofuel - sugarcane ethanol. In the press statement, the Agriculture Ministry said that Ford Motor Co (F) in Germany was developing a "green" car, defined as a car that runs on nonpolluting fuels developed in areas friendly both to the environment and to labor. Norbert Kreuger, Manager of Corporate Citizenship at Ford in Europe, said at an event this week in Frankfurt discussing Brazilian agriculture that the success of biofuels will depend on how they are produced. Ethanol must be ecological and socially acceptable to Ford. This is the key to the German biofuels market," Kreuger said. The Agriculture Ministry added in the press release that Kreuger said Brazil has to overcome negative publicity in Germany that suggests Brazil's cane production is expanding at the demise of tropical forests, and workers' rights. Most of Brazil's cane is located in the center-west and south in fields already opened to cane or other crops. For example, in Sao Paulo, the No. 1 sugarcane-producing state, cane is expanding by taking over coffee, soy and orange groves. "There is no sugarcane in the Amazon," Rodrigues said in Frankfurt. Rodrigues, 63, is a sugarcane farmer. He resigned unexpectedly in late June. "It rains too much for cane to grow well, and makes it hard for the plant to produce sucrose," he said. Sucrose is sugar. "Regarding poor labor conditions, we have to be careful not to generalize," Rodrigues said. "These are isolated cases and the government has been working hard to fight it." He said the standard of living has improved in towns where sugarcane is grown and processed for sugar or ethanol. During the harvest, part time day laborers, a few which live in ramshackle homes on the side of the street outside of farms, can earn a base salary of 500 Brazilian reals per month, or roughly $227 per month. Extra income is paid to those who cut more cane, a razor sharp plant that can grow over six feet tall. The national minimum wage is currently BRL350 per month. Brazil is trying to position itself as a world leader in renewable biofuels in hopes it can serve China and Europe with fuels derived from its massive crop land. Sweden, for example, has a national plan to eliminate dependence on oil by 2030. Part of that plan involves the production of flex-fuel cars, automobiles that can run on traditional gasoline was well as ethanol. Rodrigues said he recognized that the Brazilian government had to show Germany that Brazil's sugarcane industry was environmentally and socially sound. Brazil is the world's No. 1 producer of sugarcane ethanol. -By Kenneth Rapoza, Dow Jones Newswires; 5511-3145-1488; kenneth.rapoza@dowjones.com easybourse.com