Haxo Bioenergy

Renewable, Sustainable, Low Carbon Biofuels and Clean Energy Company

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Ethanol - Latin America (Week Report)

Latin America – Brazil’s domestic prices continued to fall this week with reduced demand and some additional inter-harvest production alleviating the tight stocks position. Hydrous prices traded as low as R$1,150/cu m ex-mill Riberao Preto (with taxes) yesterday with offers currently pegged at R$1,200/cu m, down another R$50/cu m from last week. Anhydrous offers are R$40/cu m lower at R$1,220/cu m (same basis). Anhydrous supplies are a little tighter than those for hydrous and analysts suspect that there will be a greater focus on hydrous production in the early part of the 2010/11 crush. The large buying group, Sindicom, were absent from the market last week, contributing to the drop in values. Export values have dropped in line with domestic price falls. The notional bid/offer range for Hydrous ANP is now cast at $480-600/cu m FOB Santos, down $35/cu m on last week. Anhydrous ANP prices have dropped by $30/cu m and are now seen in an indicative $510-720/cu m band while EU Grade Anhydrous prices have fallen by a similar margin and are now priced at $650-750/cu m.

Posted March 3, 2010