Indexes have small raises in July

Brazilian ethanol prices have small raises during July. For anhydrous, which is blended with gasoline in 25 percent, the CEPEA/ESALQ Index (Sao Paulo state) upped 1.91 percent in the period and for hydrated (used directly in vehicles as a fuel), 2.74 percent. These percents are small comparing to the previous months variations (decreases), showing that the supply and the demand were relatively equilibrates. Based on the historic, the lowest prices are registered in June - typical behavior.

From July 23rd to 27th, the Index for hydrated upped 1.22 percent over the previous week, at 0.59226 real or 0.31336 dollar per liter (excluding taxes), in Sao Paulo state. For anhydrous, the raise was of 0.86 percent, at 0.67492 real or 0.35710 dollar per liter. Mills tried to increase prices after strong devaluations in previous months. Moreover, rainfalls that occurred in some regions of Sao Paulo state reduced the production in some mills, supporting values.

Price parity calculated by Cepea shows that the sugar has been remunerated 7 percent more than the anhydrous ethanol and 14 percent more than the hydrated since the second fortnight of the June. Comparing the two types of ethanol, the anhydrous remunerated 7 percent more than hydrated in the last week of July.

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