Due to the firm sugar prices and the decreases of ethanol values, the hydrated lost advantage over the sugar at the end of January. Between Jan 21st and 25th, the sugar remunerated 4 percent more than the hydrated - this advantage was not observed since Nov/07. The anhydrous kept remunerating 2 percent more than the sugar, according to the Cepea (Sao Paulo state). Comparing the two types of ethanol, the anhydrous kept remunerating 7 percent more than hydrated in the same period.
The Brazilian ethanol market moved at a slow pace during the first month of the year. Buyers kept purchasing small volumes, due to the decreasing prices (higher supply), even with the off-season period. The monthly CEPEA/ESALQ Index for the anhydrous dropped 7.6 percent in Real over December, averaging 0.78622 real or 0.4442 dollar per liter (excluding taxes). For the hydrated, the decrease was of 7.2 percent, at 0.69718 real or 0.3939 dollar per liter (excluding taxes).