Brazil: Ethanol Prices Drop In The Last Week of April As Mills Resume Activities

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Ethanol prices sold by mills in Brazil’s Sao Paulo state decreased on the week of April 22-26, when sugarcane processing units resumed normal activities after rains had reduced the pace of production in the first weeks of the season, reports Sugar online.

The price of hydrous ethanol fell 6.47% last week, to BRL1.8562/litre (US$0.4705), according to data of the Centre of Advanced Studies on Applied Economics (CEPEA). CEPEA/ESALQ index for anhydrous ethanol closed at BRL2.0496/litre (US$0.5196), down 2.58% from the prior week.

Despite the fall in prices in the past week, prices increased in the first four weeks of April.

The average price for hydrous ethanol in the spot market in the first four weeks of April was BRL1.8462/litre, up 3.7% from the average of the four weeks of March. The average price for anhydrous ethanol was 5.9% higher than the average price in the prior month, at BRL1.9862/litre.

The supply of crystal sugar in the spot market didn’t increase last week despite the resumption of normal activities at São Paulo’s mills, and prices remained firm. The sugarcane mills in the state prioritized deliveries to fulfill contractual commitments, or focused on ethanol production, according to CEPEA.

The average CEPEA/ESALQ index for crystal sugar (Icumsa, 130-180) last week was BRL69.53/bag of 50 kilos, up 1% from the prior week.

The price of crystal sugar in Sao Paulo’s spot market increased 1.48% in April, in relation to the prior month, closing at BRL69.86 (US$17.83) on April 30.

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