12 November 2013 15:50 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--Distributors are restocking diminished inventories of hydrous ethanol ahead of the long holiday weekend celebrating the Brazilian republic, research group CEPEA said on Tuesday.
The volume of business transacted during the week ended on 8 November surged by 50% over the previous week, CEPEA said.
The surge in demand, paired with the bearish stance of producers and limited supply available, pushed up prices over the course of the week, researchers said.
CEPEA assessed average hydrous ethanol prices for the week ended on 8 November higher at Brazilian reais R1.1676/litre ($1.90/gal, €0.38/litre), up by 0.4% week over week, CEPEA said.
According to CEPEA researchers, anhydrous ethanol spot volumes transacted plummeted over the same time period, falling by 43%.
Most anhydrous volumes are to fulfill previously contracted volumes.
Anhydrous ethanol was assessed lower at R1,3331/litre down by 0.7 %, CEPEA said.
Brazil blends anhydrous ethanol in gasoline at a mandated 25% as of 1 May 2013, while hydrous ethanol is used as a standalone fuel in flexible-fuel vehicles (FFVs).
The sugarcane harvest in the centre-south, which accounts for 90% of Brazil's ethanol production, runs from April to November/December.
Brazil also produces ethanol in the northeast region of the country. The sugarcane harvest in that area runs from September to March.
The price does not include taxes or freight, according to the research group.
($1 = €0.75, $1 = R2.33)
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