Ethanol - Latin America ( Week Report )
Latin America – Brazil’s domestic prices fell further last week but wet weather and increased demand helped arrest the decline and may point to a firming in values going forward. Only a small proportion of mills had begun crushing the 2010/11 crop and fine weather had allowed them to make excellent progress prior to the weekend. However, heavy rainfall across the region has disrupted operations and interrupted supplies. Renewed demand from distributors, who are beginning to see some recovery in hydrous demand now that prices have become competitive in six or more states, is also provided support. Nevertheless, Hydrous traded at about R$900/cu m ex-mill Ribeirao Preto (with taxes), down R$80/cu m on the week with offers at R$910-920/cu m. Anhydrous offers fell by a similar margin to R$920/cu m (same basis). This has allowed further discounting on export markets with hydrous offers slipping $50/cu m to $460/cu m FOB Santos while bids dropped $40/cu m to $440/cu m. Anhydrous ANP values are now assessed in a $480-600/cu m FOB Santos bid /offer range, down $60/cu m. EU Grade Anhydrous bids fell $50/cu m to $500/cu m FOB Santos while offers slipped $60/cu m to $580/cu m.
