Brazil ethanol snaps downtrend, up after 9-week decline

22 June 2010 16:40  [Source: ICIS news]

HOUSTON (ICIS news)--Brazilian ethanol prices rose in the week ended 18 June, reversing a nine-week downtrend on the back of tighter spot supply, research group CEPEA said on Tuesday.

CEPEA assessed hydrous ethanol at Brazilian reais (R) 0.7382/litre ($1.58/gal), a jump of 5.2% from R0.7020/litre in the week ended 11 June.

Anhydrous ethanol was assessed at R0.8426/litre, up by 5.0% from R0.8023/litre a week earlier.

The jump this week came as producers offered less ethanol in the spot market, CEPEA said, adding that recent sugar and ethanol spot sales had helped improve cash flows in the industry.

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

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

($1 = R1.77)

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By: William Lemos
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