According to DATAGRO, a lack of industries to negotiate with may be to blame for the recent volume reduction in the ethanol market. Plinio Nastari, president of DATAGRO said “the hike in federal taxes only went into effect last Wednesday (01), with no evident impact on demand yet. The scenario is favorable for ethanol prices as a result of both the expected increase in demand for hydrous ethanol and the decline of more than 10% in supplies, mainly of anhydrous ethanol. One factor contributing to the low ethanol stocks is Brazil’s quick export expansion. Brazil shipped 417 million liters of ethanol in January and February, up 136.5 percent over the same period in 2022.
Sources: DATAGRO/União Nacional da Bioenergia (*Translated by Ia Niani)