Latin America – Further rainfall over the weekend has compounded an already tight stocks position in Brazil and contributed to a further upsurge in domestic prices. Offers of hydrous are scarce and those of anhydrous almost non-existent. Hydrous is offered at R$1,150/cu m ex-mill Ribeirao Preto with trades occurring at these levels. Anhydrous prices are assessed at similar levels but the market is extremely illiquid. Local traders expect domestic prices to continue to firm with the majority of mills expected to wind down operations by Christmas and recent rainfall is likely to have impacted negatively on ATR yields. Some of the newer mills are expected to continue crushing through the inter-harvest period and the need to service debt may require them to sell at discounted values to maintain cashflow. Those fuel distributors that are not constrained by a lack of storage may now look to lock in supplies for the upcoming holiday period and over the inter-harvest period. Export values have been boosted by the rise in domestic prices. Bids for hydrous remain at $575/cu m FOB Santos but offers have risen $15/cu m to $610/cu m. Notional bids for Anhydrous ANP have been increased by $5/cu m to $600/cu m FOB Santos but offers are assessed $25/cum higher at $700/cu m. Indicative bids for EU Grade Anhydrous have risen by $20/cu m to $640/cu m FOB Santos but offers have also risen by $10/cu m to $720/cu m.
Haxo BioEnergy Limited is a producer of low cost, sustainable bioethanol from sugar cane with land and integrated agroindustrial operations in State of Sao Paulo, Brazil. Haxo BioEnergy’s strategy is to become a leading production company for ethanol and clean electricity, and to build a strong position towards major domestic and international buyers, supported by long term and active owners.