30 December 2011

BRASIL / USA : Biofuel Flood Fears Fade As Costly Tariff Expires.


     For 3 decades...USA farmers have feared the flood of biofuels from Brasil's extensive sugarcane crops.
     The USA levied a stiff $.54 per gallon tariff on the fuel to discourage imports.
     No more worries...as the restriction finally ended.
     Because instead Brasil is actually importing corn biofuels...from the USA.
     Brasil's tremendous growth...reduced sugarcane production...and worldwide demand for raw sugar...have led to a shortage there...with demand outstripping supply...by 25%.