According to the consulting firm, Cogo – Intelligence in Agribusiness, the demand for biodiesel is growing amazingly fast. The gradual recovery of international oil prices has led to increase ethanol prices in Brazil, and the demand is set to recover. Cogo says that the units of production keep prices stable, and this is due to greater demand. The ethanol price parity with gasoline is lower than 70%, being favorable to biofuel. A few days ago, Petrobras increased gasoline prices by 6%. In São Paulo’s gas stations, ethanol price parity with gasoline is over 64.2%, remaining favorable to hydrated ethanol since the beginning of the 2020/2021 season. Brazilian production of sugarcane ethanol is expected to reach 27.9 billion liters in the current 2020/2021 harvest, 18.1% lower than the 34 billion liters produced last harvest.
Source: Canal Rural