With much of the Asian market currently en route to Budapest, discussion remained quiet on Monday, leaving PRIMA’s spot Ulsan B-grade index sitting flat at 550USD/m3. Brazilian ethanol made considerable WoW gains of 3% in the FOB Santos Anhydrous market and 5.3% in the FOB Santos B-grade market last week, following heavy rains which stumped sugarcane crushing for the week. This has seen Brazilian ethanol prices reach their highest levels since 2011, with domestic hydrous ethanol demand also sitting at its highest level for this time of year ever recorded.
The El Nino weather patterns which are forecasted for the next few months are expected to boost the Brazilian sugarcane harvest for the new crop season in 2016, especially in the states of Sao Paulo and Minas Gerais. Heavy rains are expected to continue in these regions for the next week.
US markets rose higher on Friday, on the back of strengthening in US corn prices, although they are still sitting considerably lower than the high-priced Brazilian product.