The price of anhydrous ethanol, used as fuel mixture, reached a historical level of R$ 3,510/ m³ on Tuesday (4) at the mills in Ribeirão Preto, even with the beginning of the 2021/22 crop, according to data from S&P Global Platts. This price represents an increase of 85% this year and is R$ 150/m³ higher than the previous record on March 2. Even with the beginning of the new season, which could provide higher supply to the market, the demand is limited and sustaining high prices. The most recent official figures from the Union of the Sugarcane Industry (Unica) pointed to a total ethanol production of 731 million liters in the first half of April, down 25.92% year-on-year. The production of anhydrous was 104 million liters, a drop of 41.47%. No extra stocks are expected for May, as most fuel distributors will supply their demand with the spot trade. Producers may well focus on sugar production in relation to anhydrous ethanol.
Source: Notícias Agrícolas (*Translated by Ia Niani)