Prices are more than 20 percent higher compared to 2005

For nearly one month, Brazilian ethanol prices have remained stable. Comparing to 2005 (from April to October), however, prices are higher this year.

In real terms, the CEPEA/ESALQ Index for anhydrous ethanol (Sao Paulo state) averaged 0.80 real per liter (excluding taxes) from Abril to October of 2005. In the same period this year, the average is 0.98 real per liter (excluding taxes), increase 22.5 percent. For hydrated, the values moved from 0.69 real to 0.86 real per liter, up 24.63 percent.

In October, the CEPEA/ESALQ Index for hydrated ethanol averaged 0.35299 dollar per liter (excluding taxes) and for anhydrous, 0.40345 dollar per liter.

Last Tuesday, October 31, the Brazilian government decided to increase from 20 to 23 percent the mix of anhydrous ethanol in the gasoline. Due to this decision, the demand for this type of ethanol should boost 60 million liters monthly.

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