Ethanol - Brazilian demand holds drops in harvest period
By Artur em 27/06/2009 :: Talk wiht us
In the first fortnight of June, Brazilian ethanol prices registered slight changes. All in all, they can be considered firm once harvest is moving on in the Center-Southern region, and sugarcane production is forecast to be, again, a record. According to Unica (Sugarcane Agroindustry Association), between early April and May 15, hydrated production rose 85 percent in relation to the same period in 2008. For the anhydrous ethanol, there was a drop of 0.42 percent in the production.
Between June 1 and 5, the Cepea/ESALQ Index (São Paulo state) for hydrated was 0.5810 reais or 0.2983 dollar per liter (excluding taxes), downing 1.15 percent in relation to the Index before. For anhydrous, the Index was 0.6716 reais or 0.3448 dollar per liter (no taxes), a drop of 1.01 percent in the period. Overall, mills kept offering to meet cash demand. Others, however, were out of market.
However, in the subsequent week, Brazilian ethanol prices negotiated in the São Paulo market recorded a slight increase. The support came from the demand for supplying to the national holiday on June 11. Sellers, in turn, were willing to trade once prices were firmer. Besides that, rainfalls registered in São Paulo state also boosted quotations because some mills were not operating.
Between June 8 and 12, the Cepea/ESALQ Index (São Paulo state) for hydrated was 0.5909 real or 0.3039 dollar per liter (excluding taxes), upping 1.69 percent in relation to the Index before. For anhydrous, the Index was 0.6818 real or 0.3506 dollar per liter (no taxes), increasing 1.52 percent in the period.
Regarding price parity calculated by Cepea, crystal sugar remunerated 93 percent more than anhydrous ethanol from June 8 to 12. As for hydrated ethanol, the sugar advantage was of 112 percent. Comparing the two types of ethanol, the anhydrous remunerated 9 percent more than the hydrated in the same period.
At São Paulo Mercantile Exchange (BM&FBovespa), anhydrous contracts have not been closed. At CBOT (Chicago Mercantile Exchange), anhydrous contract July/09 upped 0.17 percent between June 5 and 12, averaging 1.7668 dollar per gallon from 8 to 12.
Source: Cepea
www.cepea.esalq.usp.br
Between June 1 and 5, the Cepea/ESALQ Index (São Paulo state) for hydrated was 0.5810 reais or 0.2983 dollar per liter (excluding taxes), downing 1.15 percent in relation to the Index before. For anhydrous, the Index was 0.6716 reais or 0.3448 dollar per liter (no taxes), a drop of 1.01 percent in the period. Overall, mills kept offering to meet cash demand. Others, however, were out of market.
However, in the subsequent week, Brazilian ethanol prices negotiated in the São Paulo market recorded a slight increase. The support came from the demand for supplying to the national holiday on June 11. Sellers, in turn, were willing to trade once prices were firmer. Besides that, rainfalls registered in São Paulo state also boosted quotations because some mills were not operating.
Between June 8 and 12, the Cepea/ESALQ Index (São Paulo state) for hydrated was 0.5909 real or 0.3039 dollar per liter (excluding taxes), upping 1.69 percent in relation to the Index before. For anhydrous, the Index was 0.6818 real or 0.3506 dollar per liter (no taxes), increasing 1.52 percent in the period.
Regarding price parity calculated by Cepea, crystal sugar remunerated 93 percent more than anhydrous ethanol from June 8 to 12. As for hydrated ethanol, the sugar advantage was of 112 percent. Comparing the two types of ethanol, the anhydrous remunerated 9 percent more than the hydrated in the same period.
At São Paulo Mercantile Exchange (BM&FBovespa), anhydrous contracts have not been closed. At CBOT (Chicago Mercantile Exchange), anhydrous contract July/09 upped 0.17 percent between June 5 and 12, averaging 1.7668 dollar per gallon from 8 to 12.
Source: Cepea
Links referenciados
Cepeawww.cepea.esalq.usp.br
www.agrosoftbrazil.com
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