2006 was very positive for the ethanol market. New plants are in building process. Other up factors are: the increase from 20 to 23 percent of the rate of anhydrous ethanol to the gasoline in Brazil, the add of ethanol to the gasoline in several countries, the leadership in agribusiness exports, and the increasing sells of flex-fuel vehicles.
Last week, the CEPEA/ESALQ Index (Sao Paulo state) for hydrated ethanol increased 4.96 percent, averaging 0.37407 dollar per liter (excluding taxes). For anhydrous, the Index decreased 0.32 percent, to 0.39652 dollar per liter (excluding taxes). Due to the increase only for hydrated, this type of ethanol reached the price parity of the anhydrous.
Comparing the average prices of this season - from the beginning of April to November - over the same period of 2005, the CEPEA/ESALQ Index of anhydrous and hydrated were around 20 percent higher this year - in nominal terms.