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Brazil Sugar Co Sao Martinho Doubts 08 Ethanol Export Increase

11/26/2007 02:06PM

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SAO PAULO (Dow Jones)--Brazilian sugarcane-milling company Sao Martinho (SMTO3.BR) said Monday that ethanol exports in 2008 will likely be the same as 2007 at around 90 million liters, said Sao Martinho's finance director, Joao Val.

"Sao Martinho will most likely remain at 90 million liters for 2008," Val said.

Nationwide Brazil should export slightly over 3 billion liters in 2007, down from 3.6 billion liters in 2006, according to industry figures.

Sao Martinho is one of Brazil's top three ethanol producers and Brazil is t heworld's leading ethanol exporter.

The U.S. is Brazil's main ethanol market, but it is expected to be mostly closed to Brazil in the first half of 2008 due to the abundant supply of ethanol in the U.S.

Source: Ken Rapoza; Dow Jones Newswires; 55-11-3145-1488; brazil@dowjones.com

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