Between June 25th and 29th, the CEPEA/ESALQ Index for anhydrous ethanol (Sao Paulo state) averaged 0.66221 real or 0.34138 dollar per liter (excluding taxes), dropping 1.04 percent in Real over the previous week. For the hydrated, the decrease was of 0.6 percent in Real, averaging 0.57646 real or 0.29717 dollar per liter (excluding taxes). These values are around 35 percent lower (in Real) than those practiced in the same period of last year (in nominal terms) - of 1.2705 real per liter for the hydrated and of 0.87685 real per liter for the anhydrous.
The pressure keeps coming from the higher supply, as the 2007/08 crop moves on. At the end of June, few trades were settled, since most part of distributors were enough supplied. Mills, in turn, were not willing to trade, focused on accomplishing export contracts.
In June, the Index for anhydrous dropped 23.6 percent against May, averaging 0.67507 real or 0.34977 dollar per liter (excluding taxes) in the period. For the hydrated, the Index decreased 14.9 percent in the same period, at 0.58786 real or 0.30459 dollar per liter (excluding taxes).
According to the Unica (Sao Paulo Sugar Cane Agroindustry Union), until the beginning of June, the ethanol production totaled 2.968 billion liters in the Center-Southern region, an increase of 9.35 percent over the same period of the last crop.