Haxo Bioenergy

Renewable, Sustainable, Low Carbon Biofuels and Clean Energy Company

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Ethanol - Latin America (Week Report)

Latin America – Prices in Brazil reached fresh seasonal highs when markets re-opened after the holiday period. Further wet weather and mill closures have reduced ethanol availability, leading to further sharp increases in offers. Hydrous offers have risen R$80/cu m to R$1,400/cu m ex-mill Ribeirao Preto (with taxes) and a small volume traded yesterday at R$1,370/cu m. Anhydrous offers are pegged R$50/cu m lower than hydrous at R$1,350/cu m (same basis). Although conditions have been dry in recent days there is more rain forecast for the end of the week, potentially interrupting the efforts of those mills that decided to continue crushing through the inter-crop. The sharp uptick in domestic values has pushed most buyers to the sidelines and bids have been scarce. Export offers have responded in kind with notional hydrous ANP offers now quoted at $730/cu m FOB Santos, up $55/cu m since our 22 December report. Based on current domestic prices, notional offers for Anhydrous ANP are at $780/cu m FOB Santos and EU grade offers at $800/cu m but some quotes as high as $844/cu m have been heard. There seems little prospect of any substantial new business being done with notional bids for hydrous ANP at $600/cu m and EU Grade at $720/cu m.