Brazil ethanol drops 0.5%, 0.2% but rains limit fall

11 November 2008 15:49  [Source: ICIS news]

HOUSTON (ICIS news)--Brazilian ethanol prices fell again in the week ended 7 November, but inclement weather last week curbed the drop in the spot market, research group Cepea said on Tuesday.

Cepea assessed anhydrous ethanol at Brazilian reais (R) 0.8740/litre ($1.52/gal), down 0.5% from R0.8783/litre a week earlier.

Hydrous ethanol was assessed at R0.6823/litre, down 0.2% from R0.6838/litre in the previous week.

Cepea said heavy rainfall last week impacted sugarcane harvesting in parts of Sao Paulo, lending support to ethanol prices due to reduced supply of the biofuel.

Sao Paulo is Brazil’s main ethanol producing state.

Brazil uses hydrous ethanol as a stand-alone fuel in flexible-fuel vehicles (FFVs), while anhydrous is blended in regular gasoline at 25%.

Cepea’s price assessments are ex-tank and do not include taxes.

($1 = R2.17)

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By: William Lemos
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