Firm demand underpins hydrous ethanol prices in BR; anhydrous devalues

Cepea, October 1 2019 – Hydrous ethanol prices remained stable in São Paulo State in September. Quotes were underpinned by the firm demand and the unwillingness of sellers to lower asking prices. In general, the attack to an oil refinery in Saudi Arabia in mid-September and the effects on the prices of fossil fuels influenced agents’ attitude and consequently hydrous ethanol quotes.


Hydrous ethanol prices were also underpinned by the 3.5% increase in the prices of gasoline A announced by Petrobras, which, in turn, were linked to the sharp oil valuation in the international market.


In the full weeks of September, the CEPEA/ESALQ Index for hydrous ethanol averaged 1.7166 BRL per liter, stable (-0.5%) compared to that from August. Concerning anhydrous ethanol, however, the CEPEA/ESALQ Index decreased 2.7% in the same period, averaging 1.8808 BRL/liter – both in the spot market.


The ESALQ/BM&FBovespa Index for hydrous ethanol delivered in Paulínia (SP) closed at 1,815.50 BRL per cubic meter (zero taxes) on Sept. 30, 0.25% up compared to that on August 30.


In the 2019/20 season (April to September 2019), the monthly averages for the CEPEA/ESALQ Indexes have been higher than that in the same period last year, by 2.77% for hydrous ethanol and by 2.53% for anhydrous ethanol (values were deflated by the IGP-M from Sept/19). Besides, the current real averages have been higher since the 2011/12 crop, when lower production kept ethanol quotes on the rise in Brazil.


The volume of hydrous ethanol traded in September decreased for the second consecutive month, by 6.9%. Compared to the same period last year, that amount is currently 30% smaller.




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