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Brazilian ethanol is "down" to $2.60 a gallon wholesale...so why is there a tariff on it?

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JohnWxy Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-18-11 06:13 PM
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Brazilian ethanol is "down" to $2.60 a gallon wholesale...so why is there a tariff on it?
http://www.soybeansandcorn.com/news/May9_11-Fuel-Demand-Outpaces-Ethanol-and-Gasoline-Production-in-Brazil

"According to the Brazilian Sugar and Alcohol Company (CBAA), the wholesale price of ethanol has fallen to R$ 1.10 per liter..."

using 3.79 Liters per gallon and 1.6 BRs to 1 dollar I figure that comes to $2.60 a gallon, wholesale. In the papers it shows Ethanol wholesale going for around $2.52 a gallon.

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hlthe2b Donating Member (1000+ posts) Send PM | Profile | Ignore Wed May-18-11 06:16 PM
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1. Because we are protecting corn prices?
as we have done for many many decades...
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