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Heavy rains and strengthening Real see Brazilian prices continue to climb

Brazilian ethanol prices rose higher on Thursday, on the back of rains seeing tightness in supply and the continued signs of some slight recovery in the Brazilian Real. This saw anhydrous and B-grade prices both jump 10USD/m3 to 510USD/m3 and 495USD/m3 respectively. PRIMA’s spot Ulsan B-grade index now sits 5USD/m3 higher at 550USD/m3, although little movement is being seen in the spot market due to supply shortages up until the end of this year. Some market participants are looking to new crop ethanol for cheaper product, with value sitting considerably lower.

US ethanol prices continued to edge slightly higher on Thursday, leaving US flat prices currently sitting too high for interest to be shown from Chinese buyers. Chinese ethanol imports were dominated by the US and Pakistan back in July, although Brazil played a much bigger part in September, with China importing 48,037m3 of Brazilian ethanol. Many market participants are reluctant to commit to business in China for the New Year, as uncertainty remains over domestic ethanol prices and future domestic production.

 

NB 30/10/2015

 

 

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