16 April 2013 17:14 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--Brazil hydrous ethanol prices in the spot market surged during the past week in Sao Paulo state, research group CEPEA said on Tuesday.
Rainy weather over the past week interrupted the 2013/2014 harvest and crush season, limiting product offered in the market, according to CEPEA researchers.
Hydrous ethanol during the week ended on 12 April was recorded at Brazilian reais (R) 1.2858/litre ($2.45/gal, €0.50/litre), a 6% increase, according to CEPEA.
CEPEA assessed anhydrous ethanol prices in the week at R1.3491/litre, up slightly from the previous week.
In addition to slowing the harvest, the rains slowed the truck transport of product by distributors and even halted some distribution lines.
Brazil will increase its ethanol blending rate to 25% from 20% on 1 May, the government said in January.
Brazil had lowered the blend rate to 20% in October 2011 because the country had insufficient supplies of anhydrous ethanol to meet demand.
Brazil blends anhydrous ethanol into gasoline. The country uses hydrous ethanol as a stand-alone fuel in flexible-fuel vehicles (FFVs), competing directly with gasoline.
CEPEA prices are ex-tank and do not include taxes.
($1 = €0.77, R1.99)
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