Brazil Ethanol Prices Mixed
Traders Eye Demand, Supply
NEW YORK (DTN) -- Brazil's ethanol prices were mixed in August with anhydrous ethanol unchanged at $2.22 gallon in the last two weeks of the months while down 1.3% month-over-month, according to a report by Cepea, a research center linked to Brazil's Sao Paulo University.
Hydrous ethanol prices jumped 2.9% to $2.10 gallon during the final week while up only 0.5% month-over-month.
Brazil produces both hydrous ethanol, which is used domestically in flex fuel vehicles, and anhydrous ethanol, which must be blended with gasoline before being used to power regular automobiles. Brazil's anhydrous ethanol is often exported to the United States and elsewhere.
The Cepea report said the 1.3% decline in anhydrous ethanol prices from July levels was underpinned by higher supply. However, demand is expected to edge up as wholesalers return to the market to restock emptied inventories.
George Orwel can be reached at george.orwel@telventdtn.com
(BM/CZ)
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