Brazil ethanol talks limited as hydrous stabilises
HOUSTON (ICIS)Hydrous ethanol prices in the state of Sao Paulo, Brazil, rose 0.25% to reais (R)1.372/litre ($1.46/gal) for the week of 18-22 April, the Centre for Advanced Applied Economics (CEPEA) said on Tuesday.
According to CEPEA, there were deals negotiated because most of the distributors had good volume in stock. On the supply side, few area mills were active in the spot market, but ethanol was entering from other states, especially loads from the state of Goiás.
Anhydrous prices fell 1.21% to R1.561 ($1.66/gal), CEPEA said.
With the recent sharp price drops of ethanol between March and early April, the sugarcane harvest, the feedstock for the fuel supplement, reached the highest level of the year.
Last week, sugar prices were 64% higher than the price of anhydrous ethanol and 75% more than hydrous material in the state of Sao Paulo. The median price of anhydrous ethanol, which would be equivalent to sugar, was estimated at R2.5567/litre, according to CEPEA.
The sugarcane harvest in the centre-south, which accounts for 90% of Brazil's ethanol production, runs from April to November/December. Brazil also produces ethanol in the northeast region. The sugarcane harvest in that area runs from September to March.
Source: ICIS News