Brazilian hydrous ethanol prices on the rise as major producers stockpile

In Brazil, for the first time in six months, stronger hydrous ethanol prices have lead to a higher parity against gasoline of 61.5% in the southeastern market. Last week the parity level was at 61.3% but the difference could still be enough to dissuage some flex-fuel drivers away from using 100% hydrous ethanol at the pump but in fact nearly 1% more drivers chose to fill up with pure biofuel. Larger ethanol producers have decided in recent weeks to stay out of the spot market, instead choosing to stockpile supplies in hopes of stronger prices later, which in turn have supported prices recently.