Ethanol - Latin America (Week Report)
LATIN America – Domestic hydrous prices have eased in CS Brazil in recent days after buyers pulled back from the market to re-assess their stocks. Hydrous values have now dropped back into a bid/offer range of R$1,340-1,360/cu m ex-mill Ribeirao Preto and some smaller volumes traded within that range yesterday. Yesterday’s values are about R$100/cu m off those of last week. Some finer weather in CS Brazil during late January and early February may be boosting supplies from those mills that decided to crush through the inter-harvest period and lower values could also be reflecting the impact on demand of higher prices for hydrous. Anhydrous offers have slipped R$40/cu m to R$1,360-1,370/cu m and are now offered at slightly higher prices than hydrous for the first time since the start of the year. A weaker Real and the softer domestic market values have helped lower export offers but bids have also followed the market lower. Hydrous ANP is currently assessed in a notional bid/offer range of $580-720/cu m FOB Santos, down $20/cu m on either end of the range. Indicative Anhydrous ANP values have fallen by the same margin and are now pegged in a $590-805/cu m FOB Santos band. Our assessments of offers for EU Grade Anhydrous have dropped $30/cu m to $820/cu m but bids have dropped $40/cu m to $730/cu m.
