Brazil ethanol prices drop on ample supply

09 December 2008 15:58  [Source: ICIS news]

HOUSTON (ICIS news)--Brazilian ethanol prices continued to drop in the week ended 5 December due to ample spot supply, research group Cepea said on Tuesday.

Cepea assessed anhydrous ethanol at Brazilian reais (R) 0.8774/litre ($1.32/gal), down by 2.2% from R0.8972/litre a week earlier.

Hydrous ethanol was assessed at R0.7362/litre, down by 0.3% from R0.7387/litre in the previous week.

A weakening in the Brazilian real this week accounted for an additional 7% drop in spot values when priced in US dollars.

The real traded at about R2.51/US dollar on Tuesday. That compares with R2.33/dollar one week ago.

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 = R2.51)

For more on ethanol visit ICIS chemical intelligence
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By: William Lemos
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