Processing getting into final stage in Brazil

Brazilian ethanol market keeps the downward trend, due to the higher supply, as crop processing moves ahead.

The domestic sugarcane production should be totally processed by the end of November and beginning of December.

Weather conditions helped harvest and processing, different from the previous season, when rainfalls hampered the activities.

The anhydrous ethanol averaged 0.40958 dollar per liter* between Sep 11 and 15, down 2.9 percent from the week before. The hydrated one averaged 0.34880 dollar per liter*, down 2.7 percent.

In August, the anhydrous ethanol averaged 0.4427 dollar per liter* and the hydrated one, 0.3797 dollar per liter*, decreasing 6.4 percent and 7.4 percent in relation to July.

Unica (São Paulo Agroindustry Union) forecasts
239 million tones of sugarcane processed in Center-Southerner of Brazil up to September 1st., 10 percent more than the registered in the same period of the last season and 65 percent of the total production expected to this season.

The Brazilian ethanol production should raise more than 10 billion liters until 2010, following the better demands in the domestic and international markets, according to the Brazilian government.

The current production of 16 billion liters would reach 26 billions in the next four years. Exports should get to 8 billion liters in 2010.

*Prices received by mills in São Paulo state, excluding taxes.

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