Hydrous ethanol prices at the pump in southeastern Brazil declined for 10th consecutive week in the most recent reporting period, the National Petroleum Agency said Tuesday.
Hydrous prices over the April 2-8 period on average represented 70.8% of the gasoline price, compared with 71.2% the week before.
Hydrous prices averaged Real 2.55/liter (81 cents/liter), down from Real 2.59/liter in the previous week, while gasoline prices averaged Real 3.60/liter, compared with Real 3.64/liter a week earlier.
Hydrous fuel ethanol is used in Brazil as a standalone biofuel (E100) by flex-fuel vehicles. To be more competitive than gasoline in Brazil, E100 generally has to be below 70% of the price of gasoline.
Hydrous prices at the pump have declined in recent weeks following lower ex-mill prices.
With the official start of the 2017-18 sugarcane crushing season on April 1, the inflow of product to the spot market has increased, pushing prices lower.
However, ex-mill prices have found some support over the past two days as rainfall in sugarcane growing areas over the weekend translated into less product in the market, offering some bullish sentiment.
In addition, market participants expect an increase in demand at the pump in April due to three national holidays.
S&P Global Platts assessed domestic hydrous ethanol at Real 1,800/cu m ex-mill Ribeirao Preto Monday, in line with the deals reported traded. This represented an increase of Real 10/cu m week on week, or 1%.
