Louis Dreyfus Unit expected to ship US ethanol to Brazil

Dreyfus Unit is one of several companies thought to be sending a shipment of US ethanol to Brazil, to aid increase in demand, say several parties with knowledge of the shipment.

3.56 million gallons of ethanol are scheduled to be delivered this week by the tanker Nordisle, stopping at ports Miramar, Itaqui and Suape.

Brazil is the world's second-largest producer of ethanol, and its supply is currently the highest it has been for three years.

Unica reports that last year, the demand for ethanol increased by 15% to 5.41 gallons, its highest rate since 2010.

Mauricio Murici, a Porto Alegre analyst, emphasises the need for a continuous supply of ethanol to meet demands: 'Consumption was surprisingly high last year and now mills must refill inventories'.

Ethanol is sourced from corn in the US and sugarcane in Brazil. In the South American country, it is formed from 75% gasoline and 25% biofuel, or as an undiluted transportation fuel.