Brazilian hydrous ethanol prices hit seven-month high as mills focus on sugar

In Brazil, hydrous ethanol prices hit a seven-month high last Thursday at $691/cu m ex-mill Ribeirao Preto as a result of tighter supplies for ethanol. High sugar prices have led sugar mills to focus more heavily on sugar production this season at the expense of ethanol production. As a result, ethanol production is expected to fall 10% this year. Prices are expected to continue to rise going forward into the inter-crush period that begins in January when prices are typically higher, but a breaking point for prices may be reached in the near-term during a limited period.