Brazilian ethanol imports were stable in February with 163.3 million liters entering the country, 

down 1% month on month, Secretariat of Foreign Trade (SECEX) data showed Tuesday. 

The volume is also down 37% from the year-ago month, the data showed. 

Cumulative imports in 2018 stand at 327.9 million liters, down 24% from a year ago. 

A  flurry  of  imports in the first half of 2017 caused prices to plunge right at the peak of the 

intercrop season. 

The volume  imported in February this year is still considered strong and reflects the plunge

in  US  ethanol prices  to their lowest level since 2005 and higher domestic prices in Brazil as 

the key Center-South region entered its intercrop season. This allowed the arbitrage window 

to open despite Brazil's recently imposed tariff of 20% on quarterly volumes greater than 150 

million liters. 

However,  the  situation  has  changed  in  the  past  year,  as  the  volume  of imports did not 

translate into lower prices, given the tightness of stocks in the intercrop season. 

Larger volumes are expected to enter the market in March, considering there were delays in 

shipping  product  out  of the US in late January and early February because extremely cold 

weather  caused  logistics  problems  for  barges  on the Mississippi River. There was also a 

shortage of product due to high demand from China. 

A large Brazilian trading company estimated the total volume of anhydrous ethanol imported 

from the US in the first quarter of 2018 might reach 712,000 cu m, with 270,000 cu m arriving 

through the Center-South ports and the balance -- 442,000 cu m -- through North-Northeast 

ports.