Hydrated prices drop 26 percent since March

Brazilian ethanol prices have been following the seasonality of supply, as expected. In real terms (excluding inflation impacts), the hydrated ethanol dropped 26.7 percent since the beginning of the crop processing, in March. The anhydrous one devaluated 14 percent in the same period, according to the Cepea/Esalq Index (São Paulo state).

The increasing demand in both domestic and international markets, however, keeps prices at higher levels this year. The average price of the hydrated ethanol in the partial of this month is 34 percent superior from July 2005. The anhydrous one is 35 percent higher.

From the end of June to July 21, prices increased 8 percent for the anhydrous ethanol and 6 percent for the hydrated one.



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