Exports of Brazilian ethanol are likely to fall by 28pc this year from 2013, as limited supply forces plants to prioritize domestic market demand, Julio Maria Borges, managing director of Sao Paulo-based consultancy JOB Economia, told Argus.

Ethanol exports are expected to fall to 1.8bn-1.9bn ltr (31,018-32,741 b/d) in 2014, compared to 2.5bn ltr in 2013 as producers focus on supplying the local automobile market rather than the export market, according to Borges

In the first quarter of 2014, Brazil exported 335.8mn, down almost 47pc from 633.2mn ltr in first quarter 2013, according to preliminary data from the trade ministry.

Brazil s center-south region is expected to produce 570mn t of cane, far from its potential to produce 640mn tons, Borges said. In 2013, Brazil s main center south crop produced 596mn tons.

The expected decline in the crop that started on 1 April reflects unfavorable weather, ranging from frost over young cane fields in July 2013 to drought in January and February 2014.

Brazil’s main sugar and ethanol producers’ association is expected to announce its crop estimate for the center-south crop later this week.