Are we witnessing the birth of "The OPEC of Ethanol"?

[w¡n9Nµ7 §£@¥€r 123]

In only a few years, Brazil has turned itself into the planet's undisputed renewable energy leader, and the highlight of Bush's visit is expected to be a new ethanol "alliance" he will forge with Brazilian President Luiz Inacio Lula da Silva.

The deal is still being negotiated, but the two leaders are expected to sign an accord Friday to develop standards to help turn ethanol into an internationally traded commodity, and to promote sugar cane-based ethanol production in Central America and the Caribbean to meet rising international demand.

Across Latin America's largest nation, Brazilian media are billing the Bush-Silva meeting as a bid to create a new two-nation "OPEC of Ethanol"...

[...]

The ethanol industry is now making profits like never before amid heavy foreign investment. Just last week, Brazil's state-run oil firm, Japan's Mitsui & Co. and a Brazilian construction firm signed a memorandum of interest to study the construction of a pipeline in Brazil that would be used to help export ethanol to Japan.

[...]

...coming up with technical standards to define quality levels for ethanol is key to turn it into a commodity that could be traded like oil.

http://biz.yahoo.com/ap/070304/brazil_us_ethanol.html

[Reynaldo 0]

The interesting fact is that if you combine their intelligence you can't get one decent president...

[GaryC 7]

Since it's grown and not mined the tropical countries are going to have the upper hand soon. I doubt if ethanol will ever stand up to oil however. We are just starting out and already it's having repercussions in our region. We are using so much corn now that the price is going up in Latin America. They are feeling the pinch because of our attempt to curb our oil usage. Who knows what will be the other unintended results will be.

[w¡n9Nµ7 §£@¥€r 123]

Since it's grown and not mined the tropical countries are going to have the upper hand soon. I doubt if ethanol will ever stand up to oil however. We are just starting out and already it's having repercussions in our region. We are using so much corn now that the price is going up in Latin America. They are feeling the pinch because of our attempt to curb our oil usage. Who knows what will be the other unintended results will be.

Tortilla prices jumped 5.9 percent in January, the most in eight years, after costs climbed for corn, the main ingredient. That increase fanned inflation and a bond market rout that curbed demand for the currency. The peso has fallen 2.3 percent in the past month, making it the world's second-worst performer against the dollar among the 70 currencies tracked by Bloomberg.

``There's a big risk that tortilla price increases will lead to higher wage demands and fuel inflation,'' said Eduardo Perez, head bond trader at Mexico City-based brokerage Valores Mexicanos SA, the country's largest independent brokerage. ``Foreign investors don't like this environment and are selling. This is directly linked to peso weakness.''

The currency's slide in the past month to 11.2165 pesos per dollar leaves it down 3.5 percent in 2007. Only the South African rand has fallen against the dollar more in the past month, weakening 3.1 percent.

A slowdown in the U.S. economy has added to the peso's drop by curbing demand for exports and cutting into remittances immigrant workers send to their families. Mexicans living abroad sent an average of almost $2 billion a month home last year.

The peso may fall further in the next several months as corn prices continue to rise. Corn has soared 16 percent in the past eight weeks and 121 percent since late 2005 as demand for the grain grows from ethanol producers.

http://www.bloomberg.com/apps/news?pid=206...&refer=home

[Otto 83]

Bush overheard commenting...."Heh..heh..all this fuss over sour-mash..? why, we got pleanty of alcohol in 'merica..".......uhm, no Mr President..you don't DRINK ethanol..

Edited March 5, 2007 by Karin und Otto

[beameup 0]

In the late 70's Prez Jimmy (the peanut) Carter outlined the greatest crisis facing the U.S. in his state of the union as being U.S. Energy Self-Sufficiency. Well, 20 years of Liberal Democrat CONTROL of congress later and they hadn't budged an inch. Liberal Democrat = all "talk" and no action. Now all of a sudden, with Dems in control again, it has become again a crisis. Will someone please tell Chris Matthews to dig-up and dust-off Jimmy Carter's 30 year old speech and re-read it.

Meanwhile, apparently the Brazilians WERE listening to Prez Jimmy Carter because they IMMEDIATELY began a 30 year program toward total Energy Self-Sufficiency - which they have now attained. Conversion of an automobile to "flex-fuel" costs around $100 USD.

[Ban Hammer 13,346]

bush in brazil? no way with all the waxing places they have in that country