Copyright © 2014 Argus Media Inc.

▪ US ethanol markets rebounded Friday as they tracked gains in the July corn futures contract which posted 10¢/bushel gains from Thursday’s close.

▪ RIN markets were subdued Friday with prices remaining fairly stable in thin discourse. Current year D4 and D6 categories felt some pressure as the EPA announced an extension of the 2013 compliance deadline, allowing obligated parties until 30 September to submit compliance reports (see story).

▪ The Brazilian market was characterized by low liquidity in Brazil for anhydrous stems as the bulk of the volume continues to be negotiated under long term contracts in the domestic market.

▪ The US biodiesel market ended the week on a quiet note Friday, with few discussions materializing.

Overview Price summary

Argus Americas BiofuelsIncorporating Argus US Ethanol

contentsEthanol 2RINs 4Biodiesel 5Latest news 7

Issue 14-6 | Friday 6 June 2014

americas ethanol prices

ethanol¢/USG ± $/m3 ±

Chicago (Argo) 224.65 +7.15 593.46 +18.89

New York Harbor 229.00 +2.50 604.95 +6.60

fob Brazil anhydrous 239.43 0.00 632.50 0.00

Los Angeles low CI 257.50 0.00 680.24 0.00

Cbot ethanol 215.50 +5.00 569.29 +13.21

riNs ¢/RINTiming Price ± Less 2013

Ethanol 2014 43.50 -0.25 -2.00

Biodiesel 2014 52.75 -0.25 +7.25

Advanced biofuel 2014 50.50 0.00 +6.00

RVO 2014 4.12 -0.02 -0.31

BiodieselPrice ±

SME New York Harbor B100 ¢/USG 361.12 -3.85

SME Houston fob B100 ¢/USG 353.12 -1.85

SME Chicago fob B100 ¢/USG 364.12 -0.85

SME fob Paranagua $/t 1,010.00 +20.00

SME fob Argentina upriver $/t 848.68 +2.35

Cbot soybean oil ¢/lb 39.01 +0.32

Biofuel spreadsspread ±

Ethanol crush spread $/bushel +1.44 +0.04

Heating oil/soybean oil spread ¢/USG -0.05 -0.03

Houston less Chicago ethanol ¢/USG +7.97 +1.97

New York Harbor less Chicago ethanol ¢/USG +4.35 -4.65

Los Angeles less Chicago ethanol ¢/USG +32.85 -7.15

Los Angeles less Nebraska ethanol ¢/USG +22.50 -0.50

Rule 11 less Nebraska ethanol ¢/USG +0.50 +3.00

Chicago (Argo)¢/USG $/m3

224.65 593.46

cif Brazil¢/USG $/m3

246.05 650.00

fob Brazil anhydrous¢/USG $/m3

239.43 632.50

Houston¢/USG $/m3

232.63 614.53

Los Angeles low CI¢/USG $/m3

257.50 680.24

New York Harbor ¢/USG $/m3

229.00 604.95

Page 2 of 10Copyright © 2014 Argus Media Inc.

Argus Americas Biofuels Issue 14-6 | Friday 6 June 2014

ethanol deals donemarket Price ¢/USG volume ’000

chicago argo

11 - 21 June 225.30 5 bl

11 - 21 June 225.10 5 bl

11 - 21 June 225.00 5 bl

June any 215.00 5 bl

Nebraska - Burlington Northern

6 - 7 June 233.00 116 USG

Nebraska - Union Pacific

6 - 7 June 235.00 174 USG

New York Harbor

June 229.00 25 bl

ethanol Low High ±

Chicago

Argo prompt ¢/USG 224.00 225.30 +7.15

Argo any Jun ¢/USG 213.00 217.00 +5.00

Rule 11 prompt ¢/USG 235.00 236.00 +3.50

New York

Any Jun ¢/USG 228.00 230.00 +2.50

US Gulf coast/south

Houston ¢/USG 231.50 233.75 +9.13

Tampa ¢/USG 248.50 249.50 +1.75

Atlanta ¢/USG 241.00 242.00 +1.75

Dallas ¢/USG 229.50 231.75 +9.13

Nebraska

Union Pacific ¢/USG 233.00 237.00 +0.50

Burlington Northern ¢/USG 231.00 235.00 +3.00

US west coast

Los Angeles low CI ¢/USG 255.00 260.00 0.00

Brazil

fob anhydrous $/m3 605.00 660.00 0.00

fob anhydrous BRL/m3 1,363.13 1,487.05 -12.14

fob hydrous $/m3 565.00 595.00 0.00

fob hydrous BRL/m3 1,273.00 1,340.59 -11.14

cif anhydrous $/m3 625.00 675.00 0.00

cif anhydrous BRL/m3 1,408.19 1,520.84 -12.48

fob Santos industrial grade* $/m3 585.00 610.00 0.00

fob Santos industrial grade* BRL/m3 1,318.06 1,374.39 +8.48

Asia

cfr Asia South Korea B grade $/m3 610.00 630.00 0.00

*assessment is as of 6 Jun

ethanol forward curves ¢/USGchicago, low-high New york, low-high

Jun 213.00-217.00 228.00-230.00

Jul 204.00-208.00 225.00-227.00

Aug 196.00-200.00 217.00-220.00

Sep 188.50-192.50 209.00-212.00

related markets ¢/USG Low High ±

Spot

New York Rbob barge 83.7 295.65 295.75 -2.06

New York Cbob barge 83.7 285.15 285.40 -1.48

Houston Rbob Colonial 83.7 289.15 289.65 -1.73

Houston Cbob Colonial 85 281.65 283.15 -5.98

Los Angeles Carbob 84 month 295.40 295.90 -5.23

Mont Belvieu natural gasoline 212.50 214.00 0.00

Settlement

Nymex Rbob settlement, Jul 293.90 -1.73

Nymex Rbob crack spread, Jul $/bl +20.78 -0.90

current month-to-date averages, Junaverages

Chicago (Argo) prompt ¢/USG 225.24

New York Harbor prompt ¢/USG 231.45

Los Angeles low CI ¢/USG 266.30

fob Brazil anhydrous $/m3 632.50

cif Brazil anhydrous $/m3 650.00

eTHaNOL

usUS ethanol markets rebounded Friday as they tracked gains in the July corn futures contract which posted 10¢/bushel gains from Thursday’s close. Trade was fairly subdued during the session, with prompt Argo transfers continuing to see the bulk of attention as dead prompt and 1-10 day forward transfers rose more than 7¢/USG in day-over-day comparison.

Discussions were labored across the US, with offers remaining few and far between in many markets. Transfers at Argo saw the strongest gains on the day with “any” month transfers climbing 5¢/USG or more over Thursday’s levels.

June barges traded up 2.5¢/USG on the day with a deal done at $2.29/USG, while the June/July spread was talked near 3¢/USG.

Rail markets were slower to react, with west coast and midcontinent markets remaining mostly unchanged on the day as discourse remained thin. Union Pacific and Burlington Northern lines returned to a more normal spread as UP cars changed hands at $2.35/USG while BN availabilities traded at $2.33/USG.

BrazilThe Brazilian market was characterized by low liquidity in Brazil for anhydrous stems as the bulk of the volume continues to be negotiated under long term contracts in the domestic market. A ship left the port of Santos yesterday to Houston where it will deliver 15,910t of anhydrous ethanol to fulfill a monthly contract, according to market sources.

Bids of industrial grade ethanol moved down $5/m³ this week as buyers tested the new support for bargains. On Thursday the spread between bids and offers had narrowed to $595-605/m³ but negotiations were aborted as lower bids surfaced below this level.

Anhydrous fob Santos quotes remained subdued today

Page 3 of 10Copyright © 2014 Argus Media Inc.

Argus Americas Biofuels Issue 14-6 | Friday 6 June 2014

0

10

20

30

40

50

25 Mar 14 17 Apr 14 13 May 14 6 Jun 14

R11 = 0

Los Angeles Ethanol vs Rule 11 ¢/USG

argus markeT maP: eTHaNOL ¢/USG

Los Angeles

ChicagoNew YorkNebraska

Houston

Sao Paulo

Itaqui

Houston less chicago

Ethanol: +7.97Rbob: -28.00

Los angeles less chicago

Ethanol: +32.85

Los angeles less Nebraska

Ethanol: +22.50

New york less chicago

Ethanol: +4.35Rbob: -21.70

rule 11 less Nebraska

Ethanol: +0.50

Houston less santos

Ethanol: -6.80

Los angeles less santos

Ethanol: +18.07

New york less santos

Ethanol: -10.43

hhh

0

25

50

75

100

125

7 Mar 14 7 Apr 14 7 May 14 6 Jun 14

Chicago = 0

LA ethanol vs Chicago ethanol ¢/USG

Freight $/t ¢/USG

USGC - Itaqui 53.00 176.74

Santos - NYH 65.00 216.76

around $605-660/m³ in the absence of liquidity in Brazil, while cif Brazil imports failed to move from its previous $625-675/m³ range as traders remained reluctant to call for foreign ethanol as peak of the crushing season draws closer.

Hydrous ethanol held stable in the $565-595/m³ range as no interest emerged abroad for the ANP specification.

Brazil’s two leading opposition candidates for the October presidential race are promising to revive the country’s troubled sugar and ethanol sector through a series of measures which include a new gasoline pricing structure, tax breaks and the creation of a regulatory framework that would expand the

participation of ethanol in the country s energy mix.Former Minas Gerais state governor Aecio Neves – who

recent polls rank in second place behind current President Dilma Rousseff – this week promised a clear break from current policy uncertainty and pledged transparent rules and “predictability” on domestic gasoline prices.

Neves promised that if elected, he would establish targets for ethanol within the fuel consumption mix. Neves blamed the current administration’s policy of favoring fossil fuel consumption over ethanol for the closure of nearly 60 sugar cane mills in the past seven years.

Page 4 of 10Copyright © 2014 Argus Media Inc.

Argus Americas Biofuels Issue 14-6 | Friday 6 June 2014

riNs deals donemarket Price ¢/RIN volume ’000 RINs

Biodiesel

2013 45.50 2,000

Ethanol

2014 43.25 500

2014 43.50 500

2014 43.50 1,000

2014 43.50 1,250

2014 43.75 1,500

2014 43.75 2,000

3456789

1011121314

25 Mar 14 17 Apr 14 13 May 14 6 Jun 14

Ethanol RIN = 0

Advanced RINs vs Ethanol RINs (current year) ¢/RIN

riNs ¢/RIN Low High ±

Ethanol

2012 44.00 45.50 +0.25

2013 45.00 46.00 +0.50

2014 43.25 43.75 -0.25

Biodiesel

2012 44.00 45.50 +0.25

2013 45.00 46.00 0.00

2014 52.00 53.50 -0.25

Cellulosic

2012 77.00 79.00 0.00

2013 41.00 43.00 0.00

Advanced biofuel

2012 44.00 45.50 +0.25

2013 44.00 45.00 0.00

2014 49.00 52.00 0.00

Renewable Volume Obligation (RVO)

2013 4.43 +0.04

2014 4.12 -0.02

riN spreads ¢/RINToday ± Prior day 5-day avg

Category spreads, 2013

Biodiesel D4-ethanol D6 0.00 -0.50 0.50 0.60

Biodiesel D4-advanced biofuel D5 1.00 0.00 1.00 0.60

Advanced biofuel D5-ethanol D6 -1.00 -0.50 -0.50 0.00

Category spreads, 2014

Biodiesel D4-ethanol D6 9.25 0.00 9.25 8.83

Biodiesel D4-advanced biofuel D5 2.25 -0.25 2.50 2.08

Advanced biofuel D5-ethanol D6 7.00 +0.25 6.75 6.75

Vintage spreads, 2013-2014

Biodiesel D4 -7.25 +0.25 -7.50 -6.80

Advanced biofuel D5 -6.00 0.00 -6.00 -5.33

Ethanol D6 2.00 +0.75 1.25 1.43

california carbon allowances $/tvintage Delivery Bid ask Price ±

2014 Dec-14 11.90 12.00 11.95 0.00

2015 Dec-15 12.20 12.30 12.25 0.00

Values in $/metric tonne

california low-carbon fuel credits $/tvintage Bid ask Price ±

2014 23.00 29.00 26.00 -0.50

Values in $/metric tonne; assessment updated weekly; assessment is as of 6 Jun

LcFs premium per carbon intensity point ¢/USGPrice ±

Ethanol, 6 Jun 0.21 -0.01

Biodiesel, 6 Jun 0.33 0.00

Former Pernambuco governor Eduardo Campos, another top presidential hopeful, said the country needs a long-term policy to make Brazil’s energy mix “cleaner and more sustainable.” He added that if elected, he would change the tax structure to recognize the environmental benefits of ethanol. Campos has also promised a more transparent gasoline pricing policy.

Campos’ running mate, former environment minister Marina Silva, has called for a carbon tax that could also benefit ethanol.

riNs

RIN markets were subdued Friday with prices remaining fairly stable in thin discourse. Current year D4 and D6 categories felt some pressure as the EPA announced an extension of the 2013 compliance deadline, allowing obligated parties until 30 September to submit compliance reports (see story).

Current year biodiesel credits were talked marginally lower, with valuations ranging between 52¢ and 53.5¢/RIN, though no trades surfaced by day’s end. Ethanol RINs fell in tandem with D4 credits, shedding 0.25¢/RIN on the day with volume changing hands between 43.25¢ and 43.75¢/RIN.

Page 5 of 10Copyright © 2014 Argus Media Inc.

Argus Americas Biofuels Issue 14-6 | Friday 6 June 2014

BiodieselTiming Low/high diff Low-high price ±

US B100

SME New York harbor ¢/USG Jul +67.00/+81.00 354.12-368.12 -3.85

SME Houston fob ¢/USG Jul +58.00/+74.00 345.12-361.12 -1.85

SME Chicago fob (rail) ¢/USG Jul +70.00/+84.00 357.12-371.12 -0.85

Latin America

fob upriver SME Argentina $/t 843.17-854.19 +2.35

SME fob Paranagua* $/t 960.00-1,060.00 +20.00

SME fob Paranagua* BRL/t 2,162.98-2,388.29 +58.70

*assessment is as of 6 Jun

related marketsPrice ±

US

Cbot soybean settlement, Jul ¢/bushel 1,457.00 -3.50

Cbot soybean meal settlement, Jul $/t 487.60 -3.00

Nymex heating oil settlement, Jul ¢/USG 287.12 -0.85

Houston ULSD Colonial ¢/USG 283.57 -0.93

Latin America

Soybean oil Argentina diff to Cbot ¢/USG -0.30/+0.20 -0.05

Soybean oil fob Paranagua* $/t 858.00/868.00 -4.50

Soybean oil cif Sao Paulo with 12% ICMS* BRL/t 2,125.00/2,150.00 +62.50

Methanol cif Paranagua* $/t 560.00/592.00 -47.00

Glycerine cif China* $/t 320.00/345.00 -17.50

Beef tallow cif Sao Paulo with 12% ICMS* BRL/t 1,800.00/1,900.00 -50.00

*assessment is as of 6 Jun

current month-to-date averages, Junaverages

SME Houston fob B100 ¢/USG 353.44

SME Chicago fob B100 ¢/USG 364.04

SME fob Paranagua $/t 1,010.00

SME fob Argentina upriver $/t 847.55

Brazil ex-mill biodiesel prices per regionmay-Jun ± mar-apr may-Jun ± mar-apr

BRL/m³ BRL/m³ $/m³ $/m³

North 2,050 -24 930 56

Northeast 2,191 -54 994 48

Centre-West 1,896 -55 860 38

Southeast 2,093 36 950 83

South 1,871 -56 849 37

$/m³ values are calculated considering Thursday s exchange rate

Data last updated on 23 May

— ANP data

The Argus RVO inched just 0.02¢/USG lower on the day to stand at 4.12¢/USG.

Prior year credits were mostly unchanged in day-over-day comparison, with a large volume D4 deal occurring flat with the previous day’s assessment of 45.5¢/RIN.

BiODieseL

usThe US biodiesel market ended the week on a quiet note Friday, with few discussions materializing. The HOBO spread contracted once more to stand at -5.45¢/USG as bean oil posted a 0.32¢/lb gain in commerce while the New York Harbor ULSD contract remained under pressure, shedding nearly a penny on the day.

US differentials to the front month NYH ULSD contract held unchanged in trade as participants once again were relegated to the sidelines by a volatile HOBO spread and sickly RIN markets.

SME premiums in the Midwest continued to be talked close to 70¢/USG over the Nymex screen for June material. New York Harbor availabilities were again held to either side of 78¢/USG over the benchmark, while US Gulf coast material valuations near NYH ULSD +67¢/USG.

argentinaThe Argentinian soybean oil market ended the week on a quiet note, with bids for soybean oil fob Rosario moving down to -30 below CBOT soybean oil which made gains during the session. August to December volumes were aligned, with bids situated 60 points below Chicago while offers were seen 30 points below the benchmark.

The SME biodiesel market was also thinly participated with prices roughly $5/t higher today to $843,17-854,19/t amid low foreign interest for SME biodiesel fob Rosario.

BrazilBrazilian biodiesel producers continued to look into the domestic market for opportunities after the government’s decision to raise the biodiesel blend from 5pc to 6pc for the next tender. Still offers surfaced $20/t higher than last week around $960/t for SME biodiesel fob Paranaguá while buyers remained absent, leaving bids notionally unchanged around $1,060/t.

On 2 June Brazil’s national petroleum agency (ANP) adjusted the terms of 10-11 June biodiesel procurement tender to comply with an increase in the national blending mandate to 6pc (B6), which was approved last week by Brazilian President Dilma Rousseff.

The tender is aimed at supplying the domestic market in July and August. According to the decree issued by Rousseff last week, the blend will increase to 6pc on 1 July and to 7pc in November. The biodiesel industry welcomed the increase, which will help to absorb some of Brazil s spare production capacity.

Page 6 of 10Copyright © 2014 Argus Media Inc.

Argus Americas Biofuels Issue 14-6 | Friday 6 June 2014

argus markeT maP: BiODieseL

Chicago

New York

Houston

Paranagua

Rosario

Rotterdam

-1

-0.5

0

0.5

1

1.5

2

2.5

25 Mar 14 17 Apr 14 13 May 14 6 Jun 14

Advanced RIN = 0

Biodiesel RINs vs Advanced RINs (prior year) ¢/RIN

hhh

50

55

60

65

70

75

80

85

90

7 Mar 14 7 Apr 14 7 May 14 6 Jun 14

HO = 0

Chicago B100 SME vs Nymex heating oil ¢/USG

Freight $/t ¢/USG

Paranagua - Rotterdam 67.00 223.43

Argentina - New York Harbor 58.00 193.42

argentina less rotterdam

$/t ¢/USG+81.32 +24.39

Houston less argentina

$/t ¢/USG-72.92 -21.87

Houston less chicago

$/t ¢/USG-36.68 -11.00

New york less argentina

$/t ¢/USG-85.01 -25.49

New york less chicago

$/t ¢/USG-10.00 -3.00

Paranagua less rotterdam

$/t ¢/USG-80.00 -23.99

The ANP has authorized 44 mills to participate in the upcoming 37th tender.

The ANP has not yet announced the ceiling price for the upcoming auction.

In the 36th biodiesel auction held on 11-12 April, biodiesel producers sold 463.8mn ltr (2.92mn bl) of biodiesel at an average price of R1.88/ltr, equivalent to $3.14/USG.

Brazil began its mandatory biodiesel program in 2008 at 2pc. The blend rose to 5pc in January 2010.

Soybean oil was negotiated BRL63/t to BRL2125-2150/t higher this week as news of the raise in blend mandate translated in a quick price hike for cif São Paulo +12pc ICMS

quotes which reached BRL 2150-2200/t on Tuesday before deflating by the end of the week. On the export front, fob Paranagua stems ticked down $2/t as producers followed the mild dip which occurred in Chicago as prospects for US soybean crop were positive and pressured values down.

In an interview given to Reuters, Brazil’s oilseed producers association (Abiove) president Fabio Trigueirinho said that the new blend mandate will expand the scope of the domestic market and reduce exports in 2014. In the longer run, the new mandate should boost production so that exports should return to normal levels as soon as 2015.

Beef tallow prices continued to melt, shedding BRL50/t to

Page 7 of 10Copyright © 2014 Argus Media Inc.

Argus Americas Biofuels Issue 14-6 | Friday 6 June 2014

FuturesTiming settlement ±

CBOT ethanol ¢/USG

Jul 215.50 +5.00

Aug 207.30 +4.90

Sep 199.10 +4.80

Oct 193.10 +4.80

CBOT corn ¢/bushel

Jul 459.00 +10.00

Sep 456.25 +12.00

Dec 457.75 +10.50

Mar 467.25 +10.50

CBOT soybean oil ¢/lb

Jul 39.01 +0.32

Aug 39.14 +0.33

Sep 39.25 +0.41

Oct 39.21 +0.47

Physical Chicago vs CBOT corn futures ¢/USG Colonial Rbob ¢/USG

hhh

0

100

200

300

400

500

600

700

7 Mar 14 7 Apr 14 7 May 14 6 Jun 14

Corn futures = 0

hhh

260

270

280

290

300

310

7 Mar 14 7 Apr 14 7 May 14 6 Jun 14

BRL1850/t as colder temperatures in the southern hemisphere prompted producers to turn to vegetable oils as the main feedstock for biodiesel production.

Glycerin values were further depressed this week as the Asian market continues to digest large April imports, leaving values $17/t lower to $333/t.

Methanol prices were seen losing $47/t to $560-592/t this week as long term contracts dipped over a declining demand and high inventory levels worldwide.

LaTesT News

ePa extends 2013 rFs compliance deadlineDelays in setting 2014 US biofuel standards will give refiners, importers and other companies more time to comply with 2013 levels.

The Environmental Protection Agency (EPA) today extended the deadline to show compliance with mandated blending volumes under the 2013 Renewable Fuel Standard (RFS) to 30 September. The EPA’s original deadline was 30 June.

The delay acknowledges the importance for such companies to know their obligations for 2014 while determining how best to comply with 2013, the report read.

“The EPA intends to finalize the remaining portion of its rulemaking to establish the 2014 renewable fuel standards shortly,” the filing read.

US biofuel policy requires any company adding to the US transportation fuel supply to ensure set volumes of biofuels are used. Companies track and demonstrate compliance with the law by collecting renewable identification numbers (RINs) representing gallons of biofuel blended into the fuel supply, either directly or by third parties.

Companies may carry forward unused RINs from the previous year as a portion of their compliance — the law allows 20pc of obligated requirements be met using 2014 using 2013 credits.

EPA said rulemaking for 2014 requirements “has been more time consuming than originally anticipated,” citing the more than 300,000 comments gathered during the rulemaking process and the numerous issues requiring a response. The agency earlier this year expected to deliver a final rule by mid-June.

The agency last November for the first time proposed a year-to-year reduction in mandated blending volumes. A proposed 15.21bn USG mandate fell 16pc below the 18.15bn USG Congress set in 2007 and 8pc below the 2013 mandate.

EPA proposed levels of 17mn USG of cellulosic ethanol, 1.28bn USG of biomass-based biodiesel and 2.2bn USG total non-corn biofuels. Conventional, corn-based ethanol would make up a 13bn USG remainder, down from 13.8bn in 2013 and the 14.4bn USG proposed in 2007 legislation.

Biofuels producers fumed at the reduction while the refining industry complained the cuts did not go far enough.

Uncertainty over the final numbers in the months that followed have helped keep prices for renewable identification

Page 8 of 10Copyright © 2014 Argus Media Inc.

Argus Americas Biofuels Issue 14-6 | Friday 6 June 2014

numbers (RINs) used to show compliance with the law near 50¢/RIN.

Refining industry group American Fuel and Petrochemical Manufacturers (AFPM) supported the decision to delay the compliance deadline, something the group requested in a letter to the EPA in late May. The move may alleviate some market instability, AFPM said.

But the group again called continued delays in a final 2014 rule unacceptable.

“Now more than six months late, the agency’s inability to recognize the impact of continued delays is yet another reason that Congress must address this set of mandates whose very premise has proven obsolete,” AFPM president Charles Drevna said.

Brazilian candidates vow to revive ethanolBrazil’s two leading opposition candidates for the October presidential race are promising to revive the country’s troubled sugar and ethanol sector through a series of measures which include a new gasoline pricing structure, tax breaks and the creation of a regulatory framework that would expand the participation of ethanol in the country s energy mix.

Former Minas Gerais state governor Aecio Neves – who recent polls rank in second place behind current President Dilma Rousseff – this week promised a clear break from current policy uncertainty and pledged transparent rules and “predictability” on domestic gasoline prices.

Neves promised that if elected, he would establish targets for ethanol within the fuel consumption mix. Ethanol’s market share of Brazil’s non-diesel fuel market peaked at 54.5pc in May 2009, but has since fallen to 32pc, or roughly back to 2005 levels because of government policies that have dried up investment in new production capacity.

Neves blamed the current administration’s policy of favoring fossil fuel consumption over ethanol for the closure of nearly 60 sugar cane mills in the past seven years.

Former Pernambuco governor Eduardo Campos, another

top presidential hopeful, said the country needs a long-term policy to make Brazil’s energy mix “cleaner and more sustainable.” He added that if elected, he would change the tax structure to recognize the environmental benefits of ethanol.

Campos has also promised a more transparent gasoline pricing policy.

Campos’ running mate, former environment minister Marina Silva, has called for a carbon tax that could also benefit ethanol.

Brazil’s leading sugar and ethanol industry association Unica has been increasingly critical of the current government for subsidizing gasoline prices and imposing other policies that have hurt the ethanol sector.

Argus Marine Fuels

Argus has launched a marine fuels service, delivering daily bunker prices and the latest market-moving news for all key global markets. The new service provides robust price assessments for high and low-sulfur marine fuels at over 60 ports worldwide.

Contact us at moreinfo@argusmedia.com for more information.

Page 9 of 10Copyright © 2014 Argus Media Inc.

Argus Americas Biofuels Issue 14-6 | Friday 6 June 2014

FuNDameNTaLs

argus successfully completes iosco assurance review Argus has successfully completed an external assurance review of its oil price benchmarks, including those for petroleum products markets. The review was carried out by professional services firm PwC. An independent and external review of oil benchmark prices is required on an annual basis by international regulators in order to satisfy Iosco’s Principles for Oil Price Reporting Agencies (the PRA Principles). For more information and to download the report visit our websitehttp://www.argusmedia.com/About-Argus/How-We-Work

Brazilian mills authorized to export biodieselLocation capacity m³/d

ADM Rondonopolis - MT 1,352.00

ADM Joacaba - SC 510.00

Bianchini Canoas - RS 900.00

Bio Petro Araraquara - SP 194.44

Biocapital Charqueada - SP 400.00

Bionasa (GO) Porangatu - GO 653.00

Biopar Rolandia - PR 120.00

Bioverde Taubate - SP 181.18

Brejeiro Orlandia - SP 54.00

BSBios Passo Fundo - RS 444.00

BSBios Marialva - PR 510.00

Camera Ijui - RS 650.00

Caramuru Alimentos Ipameri - GO 625.00

Caramuru Alimentos Sao Simao - GO 625.00

Cargill Tres Lagoas - MS 700.00

Delta Biocombustíveis Rio Brilhante - MS 108.00

Fertibom Catanduva -SP 333.30

Fiagril Lucas do Rio Verde - MT 563.00

Granol Anapolis - GO 1,033.00

Granol Cachoeira do Sul-RS 933.33

Noble Rondonopolis 600.00

Oleoplan Veranopolis - RS 1,050.00

Olfar Erechim - RS 600.00

Potencial Lapa- PR 171.00

Tres Tentos Santa Barbara do Sul 500.00

Data last updated on 30 abr

— ANP and Official Gazette data

Brazil biodiesel industry data metric monthly change

Biodiesel production Nov/m³ ¹ 259,480 18,859

Domestic diesel production Nov/m³ ² 4,268,645 681,132

Domestic diesel sales Nov/m³ ³ 4,788,499 130,771

Diesel imports Nov/m³ 4 619,644 39,582

Diesel exports Nov/m³ 5 1 -59,913

Heavy vehicles sales Dec/per unit 6 4,175 863

Glycerine exports Dec/t 7 19,066 -2581, 2, 3, 4, 5 ANP, 3 with 5% biodiesel content6 Anfavea (includes trucks, buses and agricultural machinery locally manufactured and imported)7 MDIC

Data last updated on 6 jun

Brazil ethanol industry data metric monthly change

Anhydrous domestic sales Sep/m³ ¹ 893,481 35,128

Hydrous domestic sales Dec/m³ ² 915,290 -98,352

Gasoline domestic sales Sep/m³ ³ 3,573,924 140,514

Gasoline domestic production Nov/m³ 4 2,405,370 204,264

Gasoline imports Sep/m³ 5 238,108 35,533

Gasoline exports Nov/m³ 6 33,576 16,820

Total ethanol exports Oct/m³ 7 138,321 7,765

Total ethanol imports Jul/m³ 8 68,502 -30,716

Flex fuel vehicles sales Dec 9 245,955 44,8101, 2, 3, 4, 5, 6 ANP (3 with 25% ethanol content)7, 8 MDIC9 Anfavea

Data last updated on 6 jun

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illuminating the markets

Petroleum

Argus Americas Biofuels Issue 14-6 | Friday 6 June 2014

Registered officeArgus House, 175 St John St, London, EC1V 4LW Tel: +44 20 7780 4200 Fax: +44 870 868 4338 email: sales@argusmedia.com

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Argus Americas Biofuels Methodology

Argus uses a precise andtransparent methodology toassess prices in all the markets it covers. The latest version of the Argus Americas Biofuels Methodology can be found at:www.argusmedia.com/methodology.

For a hard copy, please email info@argusmedia.com, but please note that methodogies are updated frequently and for the latest version, you should visit the internet site.

Last Updated: May 2014

The most up-to-date Argus Americas Biofuels Report Methodology and Specifications guideis available on www.argusmedia.com

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Contents:Methodology rationale 2Definition of trading day 2Survey process 2Market data usage 2Verification of transaction data 3Primary tests applied by reporters 3Transaction tests 3Transparency and confidentiality 3Basis differentials and absolute prices 3Swaps and forwards markets 4Publications and price data 4Swaps and forwards markets 4Publications and price data 4Corrections to assessments 4Ethics and compliance 4Consistency in the assessment process 4Review of methodology 4Changes to methodology 4Updates to methodology 5

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