After keep stable during most part of March, Brazilian ethanol prices moved down from Mar 24th and 28th. Some mills of Sao Paulo state have already started the process of the 2008/09 crop, which pressed values down. Moreover, some mills that still have ethanol from the previous crop remained trading their stocks.
From March 24th to 28th, the CEPEA/ESALQ Index (Sao Paulo state) for the anhydrous averaged 0.82037 real or 0.47229 dollar per liter (excluding taxes), decreasing 1.62 percent in Real over the previous week. For the hydrated, the average was of 0.74479 real or 0.42878 dollar per liter (excluding taxes) in the same period, dropping 2.28 percent in Real.
In March, latest month of off-season period, the lower ethanol supply has supported the prices. The CEPEA/ESALQ monthly Index averaged 0.83151 real or 0.4863 dollar per liter (excluding taxes), rising 2.9 percent in Real over February. For the hydrated, the increase was of 5.58 percent in Real during the same period, at 0.75456 real or 0.4413 dollar per liter (excluding taxes).
According to the Unica (Sao Paulo Sugar Cane Agroindustry Union), ethanol stocks from the 2007/08 crop should total 2.8 billion liters in the Center-Southerner of Brazil, enough volume to supply the demand until the 2008/09 crop opening. (Cepea - Brazil)