Brazil ethanol: strong harvest, lowering prices

HOUSTON (ICIS)–Hydrous ethanol prices in the state of Sao Paulo, Brazil, fell 1.99% to reais (R)1.3452/litre ($1.43/gal) for the week of 25-29 April, compared to the previous week, the Centre for Advanced Applied Economics (CEPEA) said on Tuesday.

Anhydrous prices fell 0.93% to R1.5466 ($1.64/gal) over the previous week, CEPEA said.

Taxes are not included in the figures.

In general, the ethanol prices have been falling almost the entire month of April in the state of Sao Paulo, because of the dry weather in most of the South-Central region, which favored the harvest of the sugarcane and increased supply. April was the official first month of the harvest of the sugarcane crop 2016-2017, CEPEA says.

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 = R3.57)