Out of uncertainty comes opportunity – the first biofuel trade on Nui Marketplace Brasil

Published on 28 April 2023

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  • Out of uncertainty comes opportunity – the first biofuel trade on Nui Marketplace Brasil

The first online trade of Hydrated Ethanol on Nui Marketplace Brasil validates that the agri-commodity industry is ready to embrace new ways of trading to achieve more stability and certainty in buy/sell negotiations.

Imminent deregulation, tax uncertainty, political change, and a volatile currency moving +/-20% in the last year have created unrest across Brazil’s commodity trading markets. The domestic ethanol and biodiesel market is no exception.

To support more effective trading in such times of uncertainty, Global B2B trading platform Nui Markets recently partnered with Brazil ethanol expert Flex Trading to launch Nui Marketplace Brasil, a digital trading platform designed specifically for biofuel and ethanol buyers and sellers to agree on trades in real-time with the advantages of transparency and efficiency as well as insights and data that help ensure fair price discovery.

With the first trade completed, Nui and Flex Trading are excited about this partnership’s potential to revolutionise ethanol and biodiesel trading.

“We fully expect platform growth to be exponential. We have found that once people try trading on a Nui Marketplace, they invariably realise that far from replacing the buyer-seller relationships, the platform’s use enhances it, creating new opportunities and access to data and insights that would have remained invisible without it.”

Kevin O'Sullivan, CEO of Nui Markets

“It’s an exciting time for the industry. Change will always make some people anxious, but early adopters will likely gain an advantage over those who wait. And I wouldn’t want to bet against digital trading becoming the future of this industry. Once a market reaches a tipping point, it will become the new normal, and everyone will use it.”

Eduardo Aromatis, Founder and CEO of FlexTrading

The ethanol market in Brazil is very significant at 28 billion litres p.a., trading at a value of over $12bn USD. When the Nui Marketplace Brasil launched late last year, it piqued interest across the industry, with companies keen to see the benefits of trading on a market-specific digital platform.

Nui CEO Kevin O’Sullivan “The trade of ethanol from sugar cane underpins the biofuel market in Brazil, and as experts in creating digital trading platforms for agricultural product trading, most recently with a similar marketplace in the US for dairy, it’s a natural extension for us.”

“Our value proposition is not just great technology. What sets us apart is the specific nature of each platform, tailored for an individual category or industry and built with deep knowledge and expertise about how each market operates. Hence, it’s fit for purpose for buyers, sellers and traders alike.”

This professionalism, global experience and proven track record appealed to Nui’s biofuel partner.

Eduardo Aromatis, Founder and CEO of Flex Trading, “The biofuel market in Brazil is large and growing, but the industry mostly still trades the same way it did forty years ago when it first emerged. Introducing a Biofuel Marketplace will transform how this can be done here. It’s a new mindset and will help the market grow and mature, increasing transparency and velocity of transactions.”

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