Ethanol Prices Remain Strong, Reports Cepea
The price of white crystal sugar started November by setting record highs, according to the Center for Advanced Studies in Applied Economics (Cepea) at Esalq/USP. The Cepea/Esalq index for sugar opened the month at R$ 164.66 per 50-kilo sack, the highest nominal value in the entire historical series.
According to Cepea researchers, the high prices of crystal sugar in the São Paulo market continue to be attributed to the low availability of lots for additional sales in the spot market. The majority of sugar production remains committed to exports.
In the ethanol market, despite a slowdown in business activity, prices remained firm in the last week. Between October 28 and November 1, the Cepea/Esalq indicator for hydrated ethanol recorded an average price of R$ 2.6023 per liter (net of ICMS and PIS/Cofins), an increase of 1.66% compared to the previous week. For anhydrous ethanol, the price rose by 1.4% in the same period, reaching R$ 2.9151 per liter.
According to Cepea researchers, sellers are holding firm on their asking prices in negotiations involving new batches, based on the expected longer off-season period at many production units in the coming months, strong domestic consumption, and good price parity at retail.
