Higher supply pushes prices down in Brazil

After two weeks of stability and one of raise, Brazilian ethanol prices decreased in the last days of April. The pressure comes from the higher supply, as the new crop harvest moves on. The CEPEA/ESALQ Index (Sao Paulo state) for anhydrous dropped 1.49 percent over the previous week, averaging 1.07490 real or 0.52950 dollar per liter (excluding taxes) between April 23rd and 27th. The hydrated devaluated 4.7 percent, at 0.91755 real or 0.45199 dollar per liter (excluding taxes). In general terms, a significant volume was traded. Buyers purchased to attend the demand from the holiday of May 1st and also to replace stocks.

Regarding monthly Indexes, even with harvest crop beginning, prices moved up expressively in April. The CEPEA/ESALQ Index (Sao Paulo state) for anhydrous increased 17.5 percent over March, averaging 1.07257 real or 0.52835 dollar per liter (excluding taxes) in April. For the hydrated, the raise was of 10 percent, at 0.94051 real or 0.46330 dollar per liter (excluding taxes). In relation to April of 2006, however, these values are 9.5 and 11.5 percent (in nominal terms) lower.



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