BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR
COOKIE NOTICE

Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
Agriculture

Prices fall as ethanol production increases in Center-South Brazil

LNG

European LNG chronicles: The Russia question

Agriculture | Biofuels

Biofuelscan

Agriculture | Electric Power | Natural Gas (North American) | Oil | Metals | Petrochemicals

North American Digital Commodities Summit, 2nd Annual

Agriculture | Biofuels

EIA says US ethanol production falls, stocks rise

Prices fall as ethanol production increases in Center-South Brazil

Highlights

The huge volume of ethanol produced by mills from Center-South Brazil during the first official month of the 2016-17 crop has increased selling pressure, triggering lower prices at the pumps.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

Ethanol production totaled 2.77 billion liters in April, up 62.35% year on year, according to official data released Monday by industry association UNICA.

Hydrous ethanol made up 66% of total production at 1.85 billion liters, up 41.82% year on year. Hydrous ethanol is used in Brazil as a standalone biofuel (E100) in flex-fuel vehicles.

The balance, or 928 million liters, was anhydrous ethanol, which saw production climb 128.07% from a year earlier. The anhydrous ethanol blend in Gasoline A increased to 27% from 25% in March 2015.

Article Continues below...



Over the first quarter of 2016 hydrous ethanol was not competitive against the gasoline price, supporting increased anhydrous production and sales during the period.

From January 1 to March 31, hydrous price parity against gasoline averaged 75.3% in the Southeast region, the country's largest consumer region.

To be more competitive than gasoline in Brazil, E100 has to be below 70% of the price of gasoline.

As 2016-17 production started to reach the spot market, ex-mill prices plunged, falling 28.25% to Real 1,600/cu m on May 13 from Real 2,230/cu m on March 1.

Weaker domestic hydrous ethanol ex-mill prices translated into more competitive retail prices in southeast Brazil in the week ended May 14, data from the National Petroleum Agency, or ANP, showed Monday.

Hydrous ethanol's price parity against gasoline slipped for the sixth consecutive week after reaching a peak of 77% in the week ended April 2.

Southeast region hydrous ethanol averaged 65.9% of the price of gasoline, down from 66.9% the previous week, the data showed.

In April, hydrous ethanol sales by Center-South mills fell 19.02% from the previous year to 1.18 billion liters, while anhydrous ethanol rose 14.44% to 783 million liters on the period, UNICA showed.

--Nicolle Monteiro de Castro, nicolle.castro@spglobal.com
--Edited by Jason Lindquist, jason.lindquist@spglobal.com