Brazil hydrous ethanol prices drop 13% on supply

HOUSTON (ICIS)–Brazil ethanol prices fell sharply this week in the state of São Paulo, the Centre for Advanced Applied Economics (CEPEA) said on Tuesday.

A production increase and plants trying to liquidate the fuel from last season directly influenced this scenario, CEPEA researchers said.

Prices for Brazil hydrous ethanol for 4-8 April reached an average of Brazilian reais (R) 1.433/litre ($1.53/gal), a drop of 13.4% compared with the previous week, when the fuel had already been devalued by 10%.

Similarly, anhydrous ethanol prices fell by 17.95% to R1.646/litre ($1.755/gal), CEPEA said.

Taxes are not included in these figures, CEPEA said.

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. The sugarcane harvest in that area runs from September to March.

($1 = R3.55)