Brazilian hydrous ethanol parity falls to 71.1%

In Brazil, the hydrous ethanol parity price in Sao Paulo continues to edge closer to the technical 70% point where ethanol becomes more economical compared to gasoline at 71.7% last week, compared to 72.5% the week prior. Ethanol prices have been falling over the past several weeks, helping to ease the parity level that will eventually trigger increased demand and support prices in return. March hydrous consumption in the Centre-South region is expected to hit 900 million liters, up from 800,000 liters in February and 1.1 billion liters expected for April.