Cepea: Brazil's Ethanol Prices Up
Cepea: Brazil's Ethanol Prices Up
NEW YORK (DTN) -- Brazil's ethanol prices rose during the final week of June amid rising demand and falling supply, according to a new report by Cepea, a market research center based at Sao Paolo University.
The report said the average price of hydrous ethanol rose 0.3% to $2.10 gallon during the week ended June 30 compared to a week earlier, while anhydrous ethanol traded at an average price of $2.30 gallon, up 0.6% from the prior week. On a monthly basis, hydrous ethanol's price averaged $2.00 gallon for June.
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The report said millers in South-Central Region, the country's sugar belt that accounts for 90% of Brazil's ethanol supply, reduced runs amid worries dry weather conditions could cause crop failure.
As a result, production fell last month just when Brazil was welcoming millions of visitors from around the world arriving for the Soccer World Cup tournament. The World Cup ends next week.
By the end of June, ethanol production had hit 6.56 billion liters for the current crop year that started Apr. 1, the report said, which is 2.75% higher than volume for the same period a year ago, but rising demand is depleting available supply. Ethanol sales to domestic end-users are up 4.5% from a year earlier, while exports are down 19%, the report said.
Brazil is a top ethanol exporter, with most of its exports typically destined for the United States.
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