Brazilian ethanol prices negotiated between mills and distributors kept moving up during the second fortnight of February, especially due to the higher demand of distributors. From Feb 18th to Feb 29th, the increase for the anhydrous and also for the hydrated Indexes was of roughly 6 percent in Real. Between Feb 25th and 29th, the CEPEA/ESALQ Index (Sao Paulo state) for the anhydrous averaged 0.83666 real or 0.4980 dollar per liter (excluding taxes), and for the hydrated, the average was of 0.74945 real or 0.4461 dollar per liter (excluding taxes).
The new contracts settled to the international market and the São Paulo Sugar Cane Agroindustry Union (Unica) forecast about ethanol exports of the Center-Southern region also contributed to raise the domestic values. Ethanol exports of the 2007/08 crop, which finishes officially in March, are predicted to total 3.1 billion liter - this volume is higher compared to that estimated previously. (Cepea - Brazil)