30 April 2013 19:13 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--Brazil hydrous and anhydrous ethanol prices in the spot market dropped during the last week in Sao Paulo State, research group CEPEA said on Tuesday.
Sunny weather over the past week allowed the harvest and crush season to progress, increasing the amount of product offered in the market, according to CEPEA researchers.
About 160 plants were said to have started the crush in the key center-south production region, according to brokers.
Hydrous ethanol during the week ended on 26 April was recorded at Brazilian reais (R) 1.1786/litre ($2.23/gal, €0.45/litre), a 9.5% decrease, according to CEPEA.
CEPEA assessed anhydrous ethanol prices in the week at R1.3721/litre, down by almost 2% from the previous week.
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 = €0.76, R2.00)
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