Hydrous ethanol losing its charm at the pump as demand pushes prices higher

In Brazil, hydrous ethanol prices are on the rise as a result in record demand for the fuel after its parity against gasoline fell to record lows. The increased demand has supported prices, which is now weighing on that parity and weakening demand at the pump. Parity has now reached 68.5%, up from near 60% just a few weeks ago, the highest since May 2014 when parity was at 69%. Ethanol prices are more than 3% higher than last week but gasoline prices held steady, leading to the narrowing of the parity.