Brazil hydrous, anhydrous ethanol remains firm

HOUSTON (ICIS)–Prices for Brazil hydrous ethanol for the week of 7-11 March remained almost unchanged compared with the week before, at Brazilian reais (R) 1.9528/litre ($1.98/gal), the Centre for Advanced Applied Economics (CEPEA) in Sao Paulo said on Tuesday.

Some mills that had been off the market began offering hydrous ethanol during the week. However, this volume was not enough to reduce prices, CEPEA said.

Despite the rising production volumes, prices for anhydrous were mostly unchanged. Some producers kept prices steady while others offered lower prices compared with previous week, CEPEA said.

The price for anhydrous was R2.0967/litre ($2.12/gal), still a slight increase of 0.6% over the previous week, CEPEA. No taxes are included in the figures.

The sugarcane harvest in the centre-south, which accounts for 90% of Brazil’s ethanol production, runs from April to November/December.

Most sales for anhydrous continue to be under contract, not in the spot market.

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

($1 = R3.73)