06 September 2011 21:05 [Source: ICIS news]
CEPEA assessed anhydrous ethanol at Brazilian reais (R) 1.3962/litre ($3.20/gal), down by 2.5% from R1.4321/litre in the week ended 26 August.
Hydrous ethanol was assessed at R1.2236/litre, down by 1.9% from R1.2468/litre a week earlier, the research group said.
Brazil uses hydrous ethanol as a stand-alone fuel in flexible-fuel vehicles (FFV), competing directly with gasoline.
Anhydrous ethanol is blended in gasoline at a mandated 25%, but the blend requirement will drop to 20% on 1 October because of increasingly tight supply in Brazil's key centre-south sugarcane region.
Brazilian ethanol production in the centre-south fell by nearly 20% in the 2011 crop year to 16 August, according to the latest figures from sugarcane industry group Unica.
The sugarcane harvest in the centre-south runs from April to November/December.
CEPEA prices are ex-tank and do not include taxes.
($1 = R1.65)
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