Brazilian ethanol mills started to process the new crop production a little earlier this year - in March. Since then, the domestic prices have been moving down. Between March 10 and May 19, the hydrated ethanol (received by mills) depreciated 32,5 percent in São Paulo state. The anhydrous ethanol values, in turn, decreased 21 percent.
According to Unica (São Paulo Sugar Cane Agroindustry Union), 89 new processing plants should be built in Brazil during the next 10 years. That is a result of the growing demand for ethanol, especially in the domestic market, due to the increasing sells of flex-fuel vehicles. Exports have also been moving up in a good range. In 2005, Brazil exported around 2 billions litters of ethanol.
Between May 15 and 19, the anhydrous ethanol averaged 0.44091dollar per litter (price received by mills in São Paulo state, excluding taxes). The hydrated ethanol, in turn, settled 0.38409 dollar per litter.