Brazilian ethanol prices tumbled over the week ended July 6 as increased offerings from mills in need of cash at the start of the month pressurized the market, research institute CEPEA/ESALQ said on a note on its website Tuesday.
"A gradual increase in ethanol supply from mills in Sao Paulo state to cover expenses at the start of the month combined with restrained demand [for spot product] resulted in further decreases in the price of the biofuel," the Piracicaba-based institute said.
Purchases from fuel distributors remained sluggish even in the run up to a state-wide holiday July 9, which usually prompts a rise in fuel sales, CEPEA/ESALQ said.
Hydrous ethanol, the one used as a standalone biofuel by drivers of flex-fuel cars, fell 1.41% compared to the previous week to Reais 1.0623/liter ($1.98/gallon).
Meanwhile, anhydrous ethanol, which is blended into gasoline at a 20% mandatory rate, fell 1.43% to Reais 1.3143/liter ($2.46/gallon).
Brazilian ethanol is produced from the fermented juice of sugarcane crops.
CEPEA/ESALQ's prices reflect product manufactured in Sao Paulo, Brazil's biggest ethanol producing region. The quotes do not include state of federal taxes or freight costs.
