31 July 2012 22:32 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--Falling Brazilian ethanol prices have opened a trade window from Brazil to the US, traders in Brazil said on Tuesday, citing a recent cargo being shipped to the US out of the Santos port.
Traders said there was a 20,000 tonne shipment from Santos, Brazil, to Florida reported last week.
Brazil's anhydrous ethanol prices remained on a downtrend in the last week of July on continued supply pressure, research group CEPEA said.
A large buyer said it projects that anhydrous values have room to move down in the coming weeks.
Anhydrous prices have fallen in the past month to Brazilian reais (R) 1,310-1,330/cbm ($2.43-2.47/gal, €526-535/cbm), a decline of R50/cbm since the beginning of July, according to ICIS.
Hydrous values have also slipped while it is still lacking competitiveness against gasoline prices, brokers and sellers said.
When ethanol is equal to or higher than 70% of the price of gasoline, drivers tend to switch to gasoline.
The hydrous and anhydrous domestic spot markets in Brazil remain largely quiet, buyers and sellers said.
($1 = R2.04)
($1 = €0.82)
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