Price indications for B-grade ethanol continued to soften slightly overnight, despite further signs of recovery in the Brazilian Real, with some November bids dropping to the 450USD/m3’s on Thursday.
Fresh UNICA data showed Brazilian exports of anhydrous ethanol in August up 32% MoM, sitting at 433,367m3 so far for the 2015/16 harvest season. Although hydrous ethanol exports are still 17% higher than this time last year, exports dropped 34% MoM, with demand in the domestic market rising due to more competitive ethanol prices compared to gasoline at the pump. Hydrous ethanol production is considerably higher than this time last year, although anhydrous production is 13% lower, leaving total ethanol production so far 3% higher than last year.
In the US prices remained flat yesterday, as the market wait in anticipation of DoE inventory level reports which will be released later today following Monday’s US public holiday.