Brazil ethanol prices hold firm on limited offers

HOUSTON (ICIS)–Prices of hydrous and anhydrous ethanol continued to stay firm amid limited offers during the off-production season in Brazil, an economic research group said on Tuesday.

Buyers’ interest on purchasing material remained limited, even after the prolonged Carnival holiday, said the Centre for Advanced Applied Economics (CEPEA) in Sao Paulo.

One reason for the sluggish demand is because large distributors have decided to postpone much of their purchases until the start of the next harvest/crush season, the group said.

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

Hydrous ethanol prices for the week of 10-12 February rose 0.58%, up to Brazilian reais (R) 1.9032/litre ($1.81/gal).

Anhydrous ethanol was also higher at R2.1068/litre, a 0.56% increase week on week, the research group said. No taxes are included in the CEPEA figures.

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 = R3.99)