|
|
|
|
||
Re: Ethanol / from CZZ mbDragondawg,
The 51 cent/gallon tax credit for US domestic producers may be revised to 45. The tariff on Brazilian ethanol is 54 cents/gallon. Both are set to expire in Dec.08/Jan.09 and the Feb Budget has to be voted on pre - Nov. 08 which is start of the FY. Farm Bill would be part of the Fed Budget. Maybe we will start to see some traction on the tax credits -- I've heard that CZZ has been able to get product in as jet fuel somehow (???) and posted a story about it. Message #213 << Cashing in on a Loophole >> on CZZ mb. The news about Brazilian ethanol has been overlooked - this article has great background & debunks myths - like encroaching on the rainforest & taking land away for vital crops --- But you are absolutely right that they could be able to avoid the tariff by having a plant in Mexico, I think the Carribbean has been mentioned too. ( CZZ post # 276 ) Story opens with: <<Brazil’s largest ethanol producer Cosan is actively looking to start producing ethanol in the United States. That’s what Marcos Lutz, Chief Commercial Officer told Ethanol Statistics in a interview this week. >> The NAFTA angle is a good one, US domestic producers are already up in arms about a coming flood of Mexican sugar because of the agreement (on US side we would be trading them corn syrup which is a cheaper sweetener than sugar. ) << At issue is a provision of the North American Free Trade Agreement, the big trade pact meant to create a common market among Mexico, Canada and the United States. Though NAFTA was adopted in 1993, some of its more controversial provisions are only now taking effect. One of them will soon open the United States to unlimited sugar imports from Mexico — the biggest crack in years in the wall of price supports and protectionism the government, at the behest of the sugar industry, has erected against foreign competition. That system includes quotas to limit domestic production and tariffs to limit imports, resulting in a market price for sugar in the United States that is typically twice the world market price. The NAFTA provision will work in both directions, with the United States able to export to Mexico a form of corn syrup often used as a sweetener. That sweetener, much cheaper than sugar, could displace some sugar use in Mexico, making more available to ship to the United States. >> This Morning --Following is great info posted by Steppin_Wolf. Along with Russia being brought into line on sugar protectionism as a condition of WTO membership, there looks to be a decline in beet sugar production in Europe. Best for last -- mentions the deal that closed last week between BP and Brazilian ethanol producer. Where there's smoke............. GLTA, gabby FO Licht update( A little late); maybe it will help sugar prices a bit/note underlines DJ ICE Sugar Review: Down But Trims Loss As Oil Surges Friday, April 25, 2008; Posted: 02:41 PMApr 25, 2008 (Dow Jones Commodities News via Comtex) -- -- style='font-size:11px;'>DOW JONES NEWSWIRES
World raw sugar futures ended lower in front months on ICE Futures U.S. Friday but pared an early slide to three-week lows as speculators covered shorts when crude oil climbed. Spot May fell in rollovers before Wednesday's expiration, with a number of against actuals posted in the front month. ICE July world raw sugar settled down 4 points at 12.25 cents a pound, with October losing 1 point to 13.01 cents. Spot May closed 13 points lower. "We sold off before dawn because of the stronger dollar, but then reversed as shorts covered when crude oil surged," a New York desk broker said. "The market responded to mixed messages today and recovered. July failed to reach 12.50 cents and the 100-day moving average at 12.51 cents." Back months ended on a strong note, however. In options, funds bought 1,000 July 13-cent and 13.5-cent call spreads. A total of 8,290 May-July switches traded by 1:50 p.m. EDT. The May-July switch worked at 75-89 points, settling at 88 points. Traders said 11,268 electronic against actuals were posted in May by 1:50 p.m., along with 581 in July and 56 in October 2010. A total of 258 exchange for swaps were done in May, 14 in July, three in October, 8 in May 2009 and 10 in July 2009. ICE electronic futures volume at 1:30 p.m. EDT was 108,645 lots, with after-hours trading extending to 3:15 p.m. EDT. In options, 6,938 calls and 6,927 puts traded by 1:30 p.m. EDT. "Trade houses are positioning to deliver raw sugar to Russia in June and July," with Russia's seasonal December-May duty expected to terminate at May's end, the desk broker said. Traders say Russia's entry into the World Trade Organization is approaching and will force Moscow to adjust its sugar duties in line with WTO policy. And Moscow may be rethinking its protectionist stance for sugar since world food prices are escalating. There may be no half-year, seasonal duty from late 2008 to May 2009 to follow this year's seasonal duty. Russia planted 55% of beet acreage by April 21, producer union Soyuzrossakhar said. The nation's plantings this year are forecast at 966,060 hectares, 9.4% smaller than last spring because of lower beet profitability. Russia produced 3.135 million tons of sugar from local beets in 2007 versus 3.265 million tons in 2006. European Union reforms are expected to reduce spring beet sowings to 1.40 million hectares from 1.65 million in 2006-07, German analysts F.O. Licht said Friday. With normal weather, sugar production could decline by 3.1 million tons to 14.6 million, raw value, this year. The E.U. has already trimmed output considerably since reforms were introduced in 2006, freeing acreage for other crops. Biofuels and ethanol are a huge growth area, with cane the best feedstock for it, according to Philip New, president of BP Biofuels, the ethanol unit of BP PLC (BP). Making ethanol from cane is cost-effective in the near and long term, he said. BP announced Wednesday it acquired a 50% stake in new cane-ethanol company Tropical BioEnergia SA in Brazil for $59.8 million. In first quarter 2008, U.S. high fructose corn syrup 55% prices, used in soft drinks, averaged 28.41 cents a pound, exceeding wholesale refined beet sugar prices - which averaged cents 26.18 cents - the U.S. Department of Agriculture said. Until recently HFCS sold at a discount to sugar. |
return to message board, top of board |
Msg # | Subject | Author | Recs | Date Posted |
5049 | Re: Ethanol / from CZZ mb Sugar refinery near Savannah determined to rebuild | Tenzing | 1 | 5/2/2008 2:15:37 PM |