Itaú BBA’s monthly report showed that the effects of a new wave of Covid-19 were felt by Brazil’s ethanol market. According to the document, the second wave of the new coronavirus disease, as well as significant uncertainties about national immunization programs may well reduce fuel demand in Brazil. Also, over concerns of lockdown in other countries, oil prices should be hit hard in the international market. Itaú BBA’s report also highlights the factors that impacted biofuel prices over the past year. The sales of hydrated ethanol totaled 1.7 billion liters, down 8.9% compared to October 2020, according to data from the National Agency of Petroleum, Natural Gas and Biofuels (ANP). In November, biofuel prices were at levels close to the fossil fuel equivalents in São Paulo, Brazil’s largest biofuel consumer (and producer) state. Even with high demand during Brazil’s year-end holidays, the uncertainties and restrictive measures of the governments took distributors to be more cautious. This decision has reduced prices at the plants, despite increases in prices of ethanol at the pump.

Source: Canal Rural

*Translated by Ia Niani