Brazilian ethanol prices keep moving down in the second fortnight March. Mills remain offering their inventories, once some units started the 2009/10 crop. Distributors, in turn, were not willing to purchase expressive volumes, waiting for new decreases. In eight weeks (since the week of February 2nd-6th) the CEPEA/ESALQ Index for anhydrous (Sao Paulo state) devaluated 22.7 percent; in relation to the hydrated, the Index accumulates a decrease of 27.8 percent in seven weeks.
Between March 23rd and 27th, the pressure remained linked to the high supply. Some mills, in need of cash or due to the proximity of 2009/10 crop beginning, offered a larger volume. Distributors, in turn, were not willing to purchase, waiting for new decreases.
In the same week, the CEPEA/ESALQ Index for hydrated (at mills in Sao Paulo state) averaged 0.5926 real or 0.2630 dollar per liter (excluding taxes), downing 7.34 percent in relation to the previous week (March 16th-20th). For anhydrous, the devaluation was of 5.87 percent, to 0.6809 real or 0.3022 dollar per liter (no taxes). In the same period of 2008, the anhydrous was traded at 0.8204 real or 0.4723 dollar per liter (excluding taxes) and the hydrated at 0.7448 real or 0.4287 dollar per liter (no taxes), in nominal terms.
Regarding the price parity calculated by Cepea, between March 23rd and 27th, the sugar remunerated 116 percent more than anhydrous ethanol. In relation to the hydrated, the sugar advantage was of 136 percent. Comparing the two types of ethanol, anhydrous remunerated 8 percent more than the hydrated in the same period. (Cepea - Brazil)