Volume of hydrous traded in June decreases 48%

Cepea, July 2 2019 – The amount of hydrous ethanol negotiated by mills in São Paulo state in June dropped 48% compared to May, according to data from Cepea. This trend is similar to that observed in the same period of 2018, when the volume decreased 33%. In the first week of June, the amount of hydrous ethanol traded was the lowest in one year (since June 22, 2018).


This scenario is related to the decrease of acquisitions of distributors in June. In general, the total hydrous ethanol traded increased only in the second and fourth weeks of the month, because of the Corpus Christi holiday, on June 20, when the demand for the biofuel usually increases.


In the partial average of the 2019/20 season (from April to June/19), prices of anhydrous and hydrous ethanol in São Paulo are 1.13% and 0.42%, respectively, lower than in the same period last crop (2018/19), in real terms (values were deflated by IGP-M June/19).


In the full weeks of June, the CEPEA/ESALQ Index for hydrous ethanol averaged 1.6206 BRL per liter, 1.5% lower than that in the full weeks of May. Concerning anhydrous ethanol, the CEPEA/ESALQ Index downed 3.53%, averaging 1.8559 BRL per liter – both in the spot market.


Some purchasers resumed buying higher volumes in late June. Some mills, in turn, were firm regarding values because of the report from Unica about the performance of hydrous ethanol sales in the first fortnight of the month. According to Unica, mills in the Central-South sold 1.26 billion liters of ethanol to the domestic market in the period. Specifically regarding hydrous, the total was 902.03 million liters, almost the same volume sold in the first half of June 2018 (915.75 million liters).


The ESALQ/BM&FBovespa Index for hydrous ethanol delivered in Paulínia (SP) closed at 1,680.50 BRL per cubic meter (without taxes) on June 28, 3.64% down compared to that on May 31.





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