Ethanol prices have risen sharply in the last week, with changes of more than 6% in the amounts paid to mills in the state of São Paulo. This is what the indicators of the Center for Advanced Studies in Applied Economics (Cepea) show, based on the São Paulo market. According to the researchers, turnover has been high. “The distributors were active in their purchases because of the proximity of the carnival. On the sales side, the agents were firm in values, also based on high daily oil prices and the consequent transfers to the price of gasoline A by Petrobras.” About the sugar market, also based on the São Paulo mills, Cepea indicator shows a drop in prices, despite the off-season, ending the 2018/2019 crop. The calendar for the sugarcane harvest runs from April 1st to March 31st of the following year. According to the researchers, mills are more “flexible” in the amounts requested, pushing prices down. The expectation for the beginning of the new harvest may have motivated a seller movement of the final stocks of the current crop, although, initially, the first lots of sugar cane are turned to ethanol in the next crop.
Source: Revista Globo Rural