Brazil hydrous ethanol firm, anhydrous drops on offseason

HOUSTON (ICIS)–Prices of hydrous ethanol remain firm as offers continue to be limited because of the off-production season in Brazil, while anhydrous prices slightly dropped, an economic research group said on Tuesday.

Since the beginning of the month, the negotiations between Sao Paulo ethanol plants and distributors have been slow, according to research done by the Centre for Advanced Applied Economics (CEPEA) in Sao Paulo.

Many buyers are still selling product purchased a few weeks ago. However, ethanol prices in the producer segment remain firm, supported by low volume offered in this off-season, the group said.

Hydrous ethanol prices for the week of 15-19 February rose 1.02%, up to Brazilian reais (R) 1.9227/litre ($1.83/gal).

Anhydrous ethanol was lower at R2.0914/litre, ($1.99/gal), a 0.73% drop week on week, the research group said. No taxes are included in the CEPEA figures.

Brazil also produces ethanol in the northeast region of the country. The sugarcane harvest in that area runs from September to March.

($1 = R3.98)