Prices for hydrous ethanol at mills in Brazil's Center-south production region have dropped 5% since the start of the sugarcane harvest on April 1, data from research company Centro de Estudos Avancados em Economia Aplicada, known as Cepea, shows.
In Brazil, hydrous ethanol is used directly in flex-fuel cars while anhydrous product is used for blending into gasoline C.
Between April 4-8, the CEPEA/ESALQ index for hydrous ethanol averaged Real 1.3845/liter ($3.30/gal) compared with Real 1.4579/liter March 28-April 1.
In a statement, Cepea researchers said a gradual increase in supplies as the harvest started coupled with low demand for the fuel after a hike in prices at the pumps were the main factors driving hydrous ethanol prices down.
