For the first time since the beginning of this crop (April this year), Brazilian ethanol prices increased with more power at the beginning of November. The upward trend was linked to the higher demand. Rainfalls also supported values, since mills interrupted the process for some days.
Between Nov 5th and 9th, the CEPEA/ESALQ Index (Sao Paulo state) for hydrated upped 13.1 percent in Real over the previous period, averaging 0.71698 real or 0.41130 dollar per liter (excluding taxes). For the anhydrous, the Index averaged 0.77765 real or 0.44611 dollar per liter (excluding taxes), increasing 9.03 percent in relation to the previous week.
In this context, the anhydrous and the hydrated returned to remunerate more than the sugar. Between Nov 5th and 9th, the anhydrous remunerated 14 percent more than the sugar and the hydrated, 12 percent.
According to the Cepea, the volume of hydrated ethanol traded between mills of SP state and distributors in October this year was the triple of the one registered in October 2006. Even though, hydrated prices of October this year were 22.8 percent lower than the monthly Index average of Oct/06. Unica data shows that the ethanol production (hydrated and anhydrous) of the Center-Southern region in this crop should be 17.5 percent higher than in the previous seasons.