The scenario has remained positive in the last months to the Brazilian sugar and ethanol markets. New plants are being built. Other positive factors are: the increase from 20 to 23 in the percentage of anhydrous ethanol added to gasoline in Brazil, the addition of ethanol to gasoline in several countries, the Brazilian leadership in agribusiness exports, the rises at Chicago Mercantile Exchange (CBOT) and Sao Paulo Mercantile Exchange (BM&F) and the increasing sales of flex-fuel vehicles in Brazil. Between January and September of this year, more than 1 million of the total cars produced were flex-fuel, according to Anfavea (Association of Motor Vehicle Manufacturers).
Regarding prices, Brazilian ethanol values have kept stable for more than two months. The CEPEA/ESALQ Index (Sao Paulo state, which produces 60 percent of the Brazilian sugar and ethanol) for anhydrous ethanol averaged 0.40298 dollar per liter (excluding taxes) last week. The hydrated averaged 0.35402 dollar per liter (excluding taxes).
In October, the Index for anhydrous downed only 1.3 percent in relation to September, averaging 0.86702 real per liter. The hydrated, in turn, upped 0.33 percent, to 0.75858 real per liter.
According to Secex (Foreign Trade Secretariat), Brazilian ethanol exports almost doubled in October - from 285.5 million liters, in October/05, to 544.8 million.