Brazil’s government go-ahead for Petrobras (PBR -3.6%) to raise its gasoline prices in early...

|About: Petrobras - Petroleo Brasil... (PBR)|By:, SA News Editor

Brazil’s government go-ahead for Petrobras (PBR -3.6%) to raise its gasoline prices in early 2013 likely will raise demand for domestically produced sugar-based ethanol, but effects also could reach U.S. shores. Ethanol output in the U.S. is expected fall ~10% next year, and a robust export market could give Brazilian mills even more incentive to produce ethanol instead of sugar.