17 August 2010 16:21 [Source: ICIS news]
CEPEA assessed anyhydrous ethanol at Brazilian reais (R) 0.9626/litre ($2.07/gal), up by 0.4% from R0.9588/litre in the week ended 6 August.
Hydrous ethanol was assessed at R0.8384/litre, a slight reduction of 0.3% from R0.8411/litre in the previous week, the research group said.
Ethanol spot prices in Brazil began August at their highest level since the start of the centre-south sugarcane harvest in April, according to CEPEA.
The centre-south accounts for 90% of Brazil's ethanol production.
CEPEA’s price assessments are ex-tank and do not include taxes.
The uptrend in the Brazilian ethanol market stems from a combination of leaner supply and rising fuel demand.
Brazilian ethanol supply is not as ample as it had been in previous years, due to increased sugar production, and fuel demand in Brazil is growing steadily amid a strong economy and a booming automobile sector.
Brazilian auto sales in January-July rose by 8.5% from the same period of 2009 to 1.8m units, according to data released last week by industry association Anfavea.
Sales in the 12 months ending in July were even stronger, rising by 15% year over year, the association said.
Market participants have also cited high sugar prices this year as a factor supporting ethanol, as increased sugar output is limiting production of the biofuel.
($1 = R1.76)
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