05 June 2012 17:29 [Source: ICIS news]
HOUSTON (ICIS)--Brazil ethanol spot prices dropped in the last week of May, pressured by increased supply, research group CEPEA said on Tuesday.
CEPEA assessed anhydrous ethanol at Brazilian reais (R) 1.3277/litre ($2.45/gal, €0.52/litre), down by 1.0% from R1.3413/litre in the week that ended on 25 May.
Hydrous ethanol prices were assessed at R1.0962/litre, dropping by 1.15% from R1.1089/litre a week earlier, the research group said.
CEPEA attributed the increase in supply last week to a push by ethanol mills to sell more spot material in an attempt to raise cash to meet end-of-month expenses.
Brazil uses hydrous ethanol as a standalone fuel in flexible-fuel vehicles (FFVs), competing directly with gasoline, while anhydrous ethanol is blended in gasoline at a mandated 20%.
CEPEA prices are ex-tank and do not include taxes.
($1 = R2.05)
($1 = €0.80)
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