The U.S. and Brazil, the world's top two ethanol producers, are expected to hold down production in coming months because of the surging cost of corn and sugar, reports Reuters.
Tight corn and sugar supplies are passing through to ethanol costs, making producers reluctant to raise production, and boosting gasoline prices as well. The U.S. and Brazil are the linchpins of worldwide ethanol supply, accounting for 75% of global ethanol exports last year, according to S&P Global Platts Analytics.
U.S. gasoline prices on average are above $3/gallon for the first time since 2014, American Automobile Association data shows, while prices in Brazil are at $4.06/gallon in June in Sao Paulo state, near all-time highs.
