Brazilian ethanol prices continue to fall in the face of record production

May 19, 2016 |

In Brazil, ethanol prices continue to fall pressured by increased ethanol production. Despite sugar prices having up to a 400-point premium over ethanol, mills continue to produce large quantities of ethanol in order to secure cash for payroll. Ethanol production in April was up nearly 63% at 2.77 billion liters, forcing mills to sell ethanol cheaper in order to make room to store new production. Of the total produced, 66% was hydrous ethanol while the remaining 928 million liters was anhydrous. Hydrous ethanol production was up nearly 42% while anhydrous was up a whopping 128%.

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